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Analysis

Private financial markets: The Road to Next

Market trends affecting investor-backed private companies

The Road to Next report series explores trends defining the private financial markets and covers investor strategies, liquidity concerns, market dynamics, and more. Our latest edition takes a look at considerations for a postpandemic environment.

A public forum for private financial markets

Deloitte and PitchBook have collaborated to produce a distinct methodology and array of data sets in order to answer some of the most pressing questions for venture capital and private equity–backed private companies. The Road to Next report focuses on critical issues companies and their backers face, covering liquidity concerns, investor strategies, macroeconomic pressures, important regulations, market dynamics, and more.

In each edition, Deloitte subject-matter specialists discuss the issues dominating industry discussions in the current environment, especially the hurdles that growing companies face as they scale. As new market trends develop, additional themes and data sets will be featured to address potential concerns that private companies may have, whether they are planning to stay private or prepare for the next phase of their journey.

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Third edition: Preparing for the postpandemic era

Amid the expansion-stage ecosystem, multiple companies are positioning for the postpandemic era. So far, funding for these businesses has yet to decline appreciably, despite the initial impact of the COVID-19 pandemic.

This edition of Road to Next explores in detail how expansion-stage companies have prepared and are preparing for that postpandemic world during the last weeks of this summer and beyond. It considers dynamics ranging from logistic matters, such as the workflows between a mix of fully remote and headquartered employees, to proofing cash flows against potentially deteriorating economic trends.

Explore four key themes that companies may want to consider in preparation for the potential market trends of a post–COVID-19 world.

Many companies have made a quick shift in reducing costs, tightening operations, and exhibiting overall resilience thus far.

-Heather Gates, Audit & Assurance Private Growth leader, Deloitte & Touche LLP

The state of recent market trends

Second edition: The IPO process in an unparalleled environment

Tracing the development of the expansion-stage companies that went public in the past decade, especially in the past few years, sheds light on the traits that led to success and provides insight into how those looking to list can navigate the current crisis.

The latest Road to Next edition explores the primary challenges and leading options for expansion-stage companies that were preparing for an IPO or already undergoing the process. It also breaks down the crucial role private equity funds can play in the COVID-19 environment, the full economic impact of the pandemic on the current expansion-stage IPO landscape, and critical fiscal and monetary measures and their effect on or viability for expansion-stage companies.

Learn how expansion-stage companies can grapple creatively with shoring up balance sheets, adapting business lines to capitalize opportunistically, and identifying leading methods to ensure continuity across operations.

First edition: An expansion-stage surge in the private financial markets

When the inaugural edition of the Road to Next series was released, the COVID-19 outbreak had yet to transform into a full-fledged pandemic. Now, months later, everything is different. The coronavirus crisis has created human tragedy at an unprecedented scale, infected millions, wreaked havoc on multiple segments of the economy, and cast a glaring spotlight on the weaknesses inherent in business models and systems across sectors worldwide.

But in the throes of any crisis lie the seeds of opportunity. Even amid the intense pressures brought to bear by the far-reaching ripple effects of lockdowns and other emergency measures, some companies are standing out for their resilience. Whether their response to disruption of their operations and strategies was swift and effective or their core business lines proved particularly well-suited, if not critical, in the time of COVID-19, some companies have led by example.

This edition of the Road to Next series focuses primarily on the expansion-stage companies that were embarking on the pathway toward an IPO before the crisis emerged. In addition to addressing other principal obstacles and opportunities for expansion-stage companies—such as a spotlight covering PE during the pandemic—this report examines PitchBook data sets in depth to provide analysis and historical context for liquidity trends around IPOs. From there, Deloitte leaders address key strategies and tactics for business leaders and teams to foster resilience and lay the groundwork to thrive, no matter the broader market conditions.

Contact us to learn more about how our Emerging Growth Company practice can help your business

 
 
 
 
 
 
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COVID-19 accounting and financial reporting-related resources

COVID-19 and financial reporting trends

Take a strategic look at the financial reporting and accounting challenges related to COVID-19 that are top of mind for many companies as well as trending and ongoing issues.

COVID-19: Accounting considerations

This publication discusses key considerations and issues for accounting and financial reporting related to COVID-19 and the CARES Act.

Accounting for the CARES
Act

Explore the financial accounting and reporting implications of the CARES Act’s provisions designed to provide relief to small and large businesses.

Explore financial reporting trends
Learn more about accounting considerations
Read about accounting for the CARES Act

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