On small devices, please use the menu in portrait orientation.

Publish Date

Aug 07, 2020

How the Coronavirus is Changing Software & Technology Deals

Matt Bryce, Managing Director

Service / Industry: ,

The Software & Technology (S&T) sector has been somewhat insulated from the negative financial and operational impact of COVID-19, however, the virus has brought about certain risks and altered the way we perform due diligence for most S&T deals. At Alvarez & Marsal (A&M) we have a dedicated financial, tax, and operational team that focus exclusively on the due diligence of S&T companies. Since March, we have encountered several transactions with COVID-19-related risks or issues. Whether you are an experienced S&T investor or just starting to look at the space, you will want to be aware of these risks and understand how to best mitigate them through diligence and structuring of the purchase agreement.

During the COVID-19 pandemic, software sales have slowed overall, but not evenly across different industry verticals and software types. As one might expect, heavily impacted verticals (e.g., hospitality, travel, retail) have declined more than less-impacted verticals (e.g., finance, insurance). Likewise, we have seen sales impacted unevenly based on the type of software — sales of marketing and sales software has decreased, whereas sales on video conferencing, remote learning, and collaboration solutions have increased. With lower costs and barriers to entry, adoption of software as a service (SaaS) has also increased with the growth of remote work.

Read the full article here

Authors

Matt Bryce

Matt Bryce

Managing Director

Matt Bryce is a Managing Director with Alvarez & Marsal’s Private Equity Performance Improvement in San Antonio. He specializes in the leadership and management of strategic, transformational and mission-critical initiatives for private equity investors and their portfolio companies. Mr. Bryce brings deep experience in pre-acquisition diligence and planning and execution for start-ups, mergers, acquisitions and divestitures.

RELATED INSIGHTS

Pivot to Savings: How IT Can Be an Agent of Cha...

As Private Equity sponsored companies pivot to recovery coming out…

Read More

Pivot to Recovery

As we work with our private equity clients to address…

Read More

Preparing for a Downturn: An Interview with Mar...

To take advantage of the next downturn, companies must position…

Read More
Back to Top