The Covid-19 pandemic may have changed the retail industry forever. An accelerated shift to online shopping even in those industries where uptake was expected to be slower has put renewed scrutiny on the operations of the country’s largest retailers and mall owners. Bankruptcies, failed mergers and volatile valuations have characterized the dealmaking scene in an industry that was already under pressure before the pandemic and is even more so as we come out on the other side. Retailers large and small have been forced to evaluate their liquidity and preserve cash all while monitoring the safety of their employees, figuring out new ways to get products to customers and preparing for a new normal for shopping once allowed to reopen.
But what does all of this mean for the future of M&A in the retail industry? What role will private equity play in accelerating change in retail and the recovery of many companies from the pandemic? How have direct-to-consumer, consignment and peer-to-peer online markets disrupted the retail industry and how will they continue to adapt? What industries are integral to supporting this burgeoning area and how are they contributing to current deal flow? When looking to the future, what subsectors of the industry will see the most new money?
Dawud Crooms serves as Senior Counsel for 7-Eleven, Inc. In this role, he leads the team responsible for all legal matters relating to the company’s M&A, finance, tax and strategic corporate transactions. Dawud also leads the legal support of 7-Ventures, 7-Eleven’s corporate venture capital team, where he oversees all legal activities, including structuring and negotiating new investments and strategic transactions.
Please fill out the form to watch the video replay of the webcast on demand.
Will the market start to see an increase in distressed M&A? While distressed transactions come with greater risks than “healthy” acquisitions, the benefits of lower costs and legal protections for the buyer could outweigh the risk.
ESG and Sustainability concerns are now playing a prominent role in how companies around the world operate, and how investors allocate their capital.