The Covid-19 Case for ADR Provisions in M&A Agreements

Myrna Barakat

April 16, 2021

The COVID-19 pandemic has wreaked havoc on economies and upended economic metrics. It’s led to some M&A deals dying, others being delayed and many sitting in limbo as parties struggle to close: Deals were agreed on pre-COVID terms based on financials that are, more often than not, simply no longer remotely applicable. With the court system backlogged and parties needing to address transaction matters in a timely fashion, alternative dispute mechanisms such as arbitration and mediation are increasingly becoming attractive options for deal makers. Going forward, deal parties and their lawyers should seek to untangle themselves from the courts and, as a matter of course, include both mediation and arbitration provisions in their transaction agreements.