Compensation & Capital Management in the Time of COVID-19

The COVID-19 pandemic has dramatically changed the status quo. The indeterminate status of its progression continues to induce significant uncertainty for all, and players in private and public financial markets are no exception. Having breached record highs in multiple metrics in the past several years, especially in private markets, the mergers and acquisitions (M&A) cycle is now entering uncharted waters. However, given the swiftness of the pandemic’s ramifications, its full effect on deal sizes remains uncertain. The pace of dealmaking alone is likely to slow due to not only economic uncertainty but also purely logistical reasons. As the companies in the world that are fortunate enough to be able to do so embark on the largest remote working experiment in history, they continue to grapple with due diligence, workflow management, meetings and more. Likewise, companies without the luxury of remote work for most of their workforce are racing to keep essential operations running. Communications necessarily have become more challenging for all, to varying degrees. Some better-prepared businesses have already adapted; others can draw lessons from those that have done so.