The unprecedented uncertainty and volatility resulting from COVID-19 obviously has significant impacts for M&A transactions – both those currently under negotiation and those signed but yet to complete.
The resulting social and economic interruptions, including earnings impacts, supply chain disruption, consumer spending irregularity and the tightening of debt financing and capital markets, have combined to make traditional valuation and deal protection mechanisms potentially inadequate, at least temporarily. Moreover, one of the key challenges for M&A transactions in the face of COVID-19 is that whilst the fact of disruption is obvious, it is not yet possible to properly assess the magnitude or short, medium and long term effects of the situation at a macroeconomic level or on specific industries. There is no precedent crisis which affects us all both economically and socially and the issues raised are untested. The impacts are also highly industry specific. Some industries hit in the short-term may take longer to recover to their pre COVID-19 levels, while other industries currently experiencing a spike may see a decline in the medium term back to pre COVID-19 levels.
Parties will need carefully consider risk allocations and be ready to work with the other side to find creative solutions to get the deal done. In this article, we highlight some key considerations for parties navigating M&A transactions in this environment.
At Venture Advisory, we are here to help through these uncertain times.
As your business is navigating challenging decisions, we hope this resource will provide useful information related to the COVID-19 global pandemic, and how the rapidly evolving situation may affect your organisation, employees and clients.
Government Support for Businesses Affected by COVID-19
New South Wales:
Australian Capital Territory:
Practical Business Resources
This is a letter sent to Sequoia founders and CEOs to provide guidance on how to ensure the health of their businesses while dealing with potential business consequences of the spreading effects of the coronavirus
In the face of COVID-19, businesses need to prepare to help their people and stay resilient through this period of uncertainty. There are many practical things that companies can do to manage their risk exposure, such as adapting continuity and crisis plans, identifying points of failure and evaluating their supply chains. Communication will be key, as will ensuring that non-virus risks are kept firmly on the radar.
ezyCollect could potentially help your business streamline and automate the accounts receivable process, to both save time and drive cashflow during this uncertain time.
Employment Hero have put together a free resource so you can be well prepared for COVID-19 as an employer.
You'll find the following in this free pack:
· COVID-19 Policy
· COVID-19 Continuity Plan: Detailed Personal Checklist (Example)
· Work From Home/Flexible Working Agreement Policy
· Work From Home Guide for Employees
· Safety tips for setting up your home Work Station
· Workplace Hygiene Poster
COVID-19 in numbers
This website provides useful daily statistics collated from media reports and verified with updates from Australian state and federal health departments.
The website’s interactive charts include:
· Total confirmed cases of COVID-19 in Australia
· Diagnoses breakdown by states and territories over time
· How Australia compares with other countries number of confirmed cases
· Current cases and deaths by state or territory interactive map
· Number of new confirmed cases each day in Australia
· State and territory breakdown of number of new cases each day
This website from John Hopkins University provides global statistics on confirmed COVID-19 cases, total death and recovery figures, a global interactive map breaking down cumulative confirmed cases and active cases, as well as charts depicting increases in confirmed cases and daily increase figures.
Government Health Resources
The following list includes websites of the Australian federal and state departments of health which are updated daily with COVID-19 information, statistics and policy changes outlining each state and territory’s response.
Practical Health Guides and Videos
MyDr.com.au and HealthDirect have created helpful resource centres with videos and articles covering everything from basis about the virus, its symptoms, prevention and diagnosis, as well as frequently asked questions.
Juice Media Podcast Episode 10 features Dr Norman Swan, presenter of ABC’s Health Report and co-host of Coronacast. The discussion includes information on the latest COVID-19 situation in Australia, the Australian government’s response, as well as well-informed opinions on school closures, potential treatments, and what Australia should do right now to avoid a similar situation to Italy and other countries around the world.
Coronacast is a free podcast that helps to answer your questions about COVID-19. The podcast breaks down the latest news and research to help you understand how the world is living through an epidemic.
Episode topics include subjects like:
· Testing works. Why aren’t we doing more?
· Should you just pull your kid out of school?
· Is this our life now for the next 18 months?
· Where did coronavirus really start? (spoiler: not a CIA lab)
· Think coronavirus only kills the old? Think again.
· Is it time to ban mass gatherings?
· What’s the best way to wash your hands?
The BBC has produced a series of maps and charts to help you understand the COVID-19 crisis. These include statistics on global cases, recoveries and deaths, how confirmed cases have spread outside of China, and charts on the situation in the United Kingdom, Italy and Europe specifically.
The Conversation is a network of not-for-profit media outlets that publish news stories written by academics and researchers. Their COVID-19 coverage offers informed commentary and debt on this critical issue affecting our world.