The CFO’s Response to Coronavirus Uncertainty

The coronavirus could ...

The coronavirus can 

The coronavirus may 

Could. Can. May.

Projections about the spread of the virus (now at the edge of pandemic proportions), about its long-term implications on the global economy and on U.S. markets, are, in a word, uncertain. And if there’s one thing the business world hates, it’s uncertainty. (Recent stock market declines are the most tangible example of this hard and fast rule.)

Private equity, in particular, has an acute allergy to uncertainty. Due diligence, detailed market projections, investment theses — they’re all designed to strip deals of uncertainty given the significant sums of money in play.

Rajan Raval

Now, all CFOs must prepare for the short-, medium- and long-term effects of the virus on their companies. Full stop. But, PE-backed CFOs, who live in an environment where cash and EBITDA are kings, shoulder an extra burden to do so,

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