House view on the Covid-19 crisis
Our reading of the market in April 2020: what stops, what carries on, and which technology positions come out of the crisis stronger than they went in.
House view, April 2020.
The crisis stopped a great deal at once, and it stopped very little permanently. Processes that were already moving online moved faster, and the businesses carrying them are ending the year with a stronger position than they started it.
For transactions the practical consequence is timing rather than direction. Buyers have not left the market; they have become slower and more careful about what they will underwrite. Sellers with a documented, resilient revenue base are still getting looked at, and are getting looked at more closely than before.