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A COVID-Exit: How to exit investments in times of unprecedented uncertainty

Emil

At times of high economic uncertainty, M&A activity can stall as buyers retreat to the sidelines, looking for bargains, while sellers are reluctant to ink a deal that may look cheap in a short while. 

COVID-19 created both unprecedented uncertainty and practical obstacles to dealmaking. Global lockdowns suddenly meant it was impossible to meet in person, develop relationships or to kick the tyres of a business and get a feel for its people, culture and operations. Despite all this, when the strategic rationale is strong and a target performs well, attractive exits can still be achieved.    

Here we share the details of navigating a software exit during a global pandemic.

Timing isn’t everything

AlbionVC led a Series A investment into Clear Review, the cloud-based continuous performance management and employee engagement software provider, in June 2019 and exited in October 2020 after a strategic acquisition by the Advanced, the UK’s third largest software company. The exit generated a 75% IRR and a significant return to our shareholders. ...

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