Goldman Sachs using drones to close M&A deals during pandemic
95% of hundreds of transactions over the last several months have been completed remotely.
Goldman Sachs is using drone technology to conduct virtual tours of companies and close merger and acquisition deals during the coronavirus pandemic.
DELTA PILOTS AGREE TO COST CUTS, AVOIDING FURLOUGHS
“We have been selling asset-based businesses all over the world using drones for site visits and fly-overs,” Stephan Feldgoise told CNBC in an interview. ``It gives buyers the confidence they need because when you are buying a business, you want to see, touch and feel what you are buying. ”
As face-to-face transactions in an industry heavily reliant on relationship building become increasingly less popular due to health and safety concerns over COVID-19, Feldgoise said more than 95% of hundreds of transactions over the last several months have been completed remotely.
Commercial-grade drones have done flyovers of shipping ports, railroads, chemical factories, warehouses and big-box retail locations to give clients a virtual view of what they are bidding on.
Other leading banks such as JP Morgan Chase are also using the airspace to further transactions.
Even before Goldman Sachs made use of drone technology for banking, the Federal Aviation Administration estimated some 2.85 million small drones could be airborne by 2022, and 450,000 of them will be used for commercial purposes.
Leading industries include real estate, industrial inspection, insurance, and agriculture, just to name a few.