Breakingviews - Face-to-face business habits will die hard

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On Breakingviews: Zoom and its ilk have changed corporate behavior. Yet the gravitational pull of meeting in person is a powerful force, and plenty of work that moved online in 2020 will revert to the real world, says jgfarb BVPredictions2021

Some perks of the digital working world outweigh the screen fatigue. Executives providing advice and professional services, for example, relish living on the ground instead of on an airplane. Ken Moelis is allowing investment bankers at his eponymous boutique to relocate far from the New York headquarters if they want.

As for mergers, there may be fewer mid-transaction flights involved, but it will take only one deal lost to a rival who pitched in person for throngs of M&A bankers to jump back into their business-class seats. And while far more efficient digital roadshows should continue post-pandemic for many initial public offerings, some investors will want trust-building live interactions. Smaller stock issuers may struggle to drum up interest without pounding the pavement.

 

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