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04.08.20

Deal making during the coronavirus (COVID-19) pandemic

BY , Philip B. Taub

Our NP Connects series brings together leaders from a variety of backgrounds to share real-time perspectives on deal making. Our first conversation discussed the impact of the coronavirus (COVID-19) pandemic on the economy as well as our expectations of how the situation will unfold over the months ahead.

Thank you to our guests, Shawn Johnson, retired Green Beret General Donald Bolduc, and Nixon Peabody partner Morgan Nighan for sharing their perspective.

Below, we share key takeaways from the program. You can also click here to access a recording of the session.

  1. We anticipate a severe economic contraction this quarter and likely into Q3. However, we expect to see businesses and the economy start to rebound thereafter.
  2. There will be winners and losers in the recession that follows the COVID-19 pandemic. Those with access to liquidity will have the opportunity to acquire businesses at lower valuations not seen since 2009.
  3. The CARES Act provides some much needed relief for small businesses experiencing financial distress as a result of COVID-19 through the PPP program. Certain provisions of the PPP program are subject to interpretation that is very facts and circumstances based. Our discussion explained a number of the key provisions around who qualifies and how to apply. The SBA continues to issues more guidance and we are following it carefully. 
  4. Showing great leadership in times of crisis means being agile and adjusting to changing situations as they evolve.
  5. We’ve seen certain industries—including hospitality, transportation, automotive, oil and gas, retail, and entertainment—take harder hits than others as a result of this crisis. We forecast increased opportunity within other verticals—including telemedicine, direct to consumer/distribution businesses, medical cleaning technology, and various software-based applications like online/remote working technologies, community-based platforms, and e-learning platforms.

For additional information and resources, visit the Nixon Peabody Coronavirus (COVID-19) Response Team page or contact us directly with questions.

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Author

Christopher P. Keefe

Partner

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Philip B. Taub

Partner

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