Stifel Survey Indicates Majority of Companies will Weather COVID-19 Storm

A new survey by Stifel Financial Corp. indicates that a majority of companies appear to have sufficient liquidity to weather the storm.

The survey of nearly 300 technology executives, entrepreneurs and private equity and venture capital investors also shows that the crisis will have a lengthy impact on business operations, leading to a U-shaped economic recession. The online survey was conducted April 6 to 12.

“Our technology industry clients and their investors appear well-positioned to withstand the immediate negative impacts of COVID-19,” said Cole Bader, co-head of the Stifel Global Technology Group. “While a natural slowdown in activity is expected, we believe that technology will be the key driver of a global economic recovery, and the sector will continue to grow strongly post-pandemic.”

More than half of the executives and entrepreneurs surveyed (52%) do not expect to initiate layoffs as a result of the economic crisis caused by COVID-19. Another 39% expect layoffs, but believe the impact will be minimal. Only 9% of executives/entrepreneurs believe that there will be layoffs with significant impact.