Deals not under complete lockdown
Despite COVID-19 placing most M&A activity into an extended lockdown, some funds are still managing to announce closure on transactions.
Catalyst caught up with Phatisa Deal Principal, Lize Lübbe, to talk about how she sees the current dealmaking environment after Phatisa Food Fund 2 (PFF 2) and a group of co-investors – Norfund, Mbuyu Capital and DEG – announced the acquisition of integrated agricultural solutions provider, Farming and Engineering Services Limited (FES).
“Due to the tough economic climate and uncertainty, the general attractiveness, or at least perceived attractiveness, of opportunities for acquisition might reduce,” says Lübbe. “However, there are interesting pockets of opportunity that are emerging during these times, such as investments in essential goods and services (including food security) and new disruptive technologies (including distribution and e-commerce).”
Lübbe also believes that reduced valuations will pose attractive acquisition opportunities – especially of quality companies with quality management – in the right sectors...
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