How will COVID-19 affect transactions?
EY’s latest Capital Confidence Barometer was carried out as COVID-19 was declared a global pandemic, and countries around the world went into lockdown. Here, two of the firm’s experts – Steve Krouskos and Steve Ivermee – explain how the ensuing crisis is likely to affect transactions.
Krouskos: Corporate executives are concerned about the impact on GDP (and therefore top-line revenue) as well as supply-chain disruption and margins, which, in many sectors, were already under some level of pressure. This is a different kind of disruption to the financial crisis of 2008. The good news is that those of us who were around during that time have learned that sitting still and being paralysed by the aftermath, especially on acquisitions and M&A, was a mistake. There were so many very valuable moves that could’ve been made.
Ivermee: The severity of the economic shock will be sharper than it was back in 2008, but it’ll be against the backdrop of a banking system and economy that are healthier. Clients are of the view that once we’ve begun to see some recovery it’ll be possible to access the liquidity they’ll need to continue to pursue transformation, acquisitions and a growth agenda.