COVID-19 has had and will continue to have a significant impact on M&A transactions in the UK. UK M&A deal activity is materially down on 2019.

The UK left the EU at 11.00 pm (UK time) on 31 January 2020 (exit day). Under the terms of the UKEU withdrawal agreement the movement of goods between the UK and the EU remained unchanged. The post-Brexit transition period ends at 11.00 pm (UK time) on 31 December 2020 and it is clear will not be extended.

The Corporate Insolvency and Governance Act (“CIGA”) became law on 26 June 2020. The CIGA sets out the detail of the Government’s reforms to the existing restructuring and insolvency regime as part of its response to the economic crisis caused by the COVID-19 pandemic.

A financial restructuring involves a company which is in financial difficulty agreeing with its stakeholders to reorganise its liabilities so that its business can survive (though not necessarily the company itself).