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.
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Going Big and Moving Fast: How PE firms in North America and Europe are Adapting Value Creation to Market Pressures
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At Alvarez & Marsal (A&M), our exclusive survey of PE executives in North America and Europe has revealed how these market forces are approaching transformation in the industry differently and where they intersect.
Show Me the Money, But the Right Money Please!
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Given the complexity of the current economy, shaped by the challenges of rising interest rates and inflation, volatile markets, shifting business models, and financially strained vendors and customers, it is essential for organizations to take proactive steps to drive profitable sales and commercial performance. Interest rates and inflation have become dominant forces steering economic dynamics.
James Marceau Recognized as a Top Private Equity Consultant and Leader of 2024 by the Consulting Report
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The Consulting Report proudly announces A&M Managing Director James Marceau as one of The Top 25 Private Equity Consultants and Leaders of 2024. These leaders play a crucial role in navigating high-stakes transactions, solving operational challenges and driving value creation strategies across diverse industries.
Alvarez & Marsal Enhances Its Procurement and Sourcing Offering Appointing John Fiorentino as a Managing Director
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Alvarez & Marsal announces the appointment of John Fiorentino as a Managing Director within the firm’s Private Equity Performance Improvement (PEPI) group. Mr. Fiorentino’s expertise unlocking procurement and supply chain-driven value creation, in support of private equity (PE) firms and their portfolio companies, provides the perfect blend of experience to expand A&M’s Procurement and Sourcing group’s strategic capabilities.
