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This story originally appeared in the Winter 2021 print edition of the Middle Market Growth Outlook Special Report. Read the full report in the archive.
The coronavirus outbreak has disrupted virtually every type of business—especially those within the middle market, according to a recent survey conducted by HawkPartners on behalf of ACG and sponsored by QBE Insurance Group Limited. Middle-market business professionals were asked about their biggest perceived risks going into 20211. “Pandemic” was mentioned more often than any other concern. For Simplura Health Group CFO James Caruso, the frequent mention of COVID-19 in the survey is very telling of the times.
“If you took this [survey] a year ago, pandemic wouldn’t be there,” Caruso says. “What that shows you is it’s the unknown risks that are potentially the most disruptive.”
The risks that the coronavirus pandemic posed seeped into all facets of business, including M&A. Orchestrating a transaction in a normal year is challenging in its own right, but the pandemic certainly makes matters worse, Caruso says, citing travel restrictions and how the typical meet-and-greets all went virtual, making M&A transactions harder to complete.