By: Ken Hirsch
As noted in the Founders Capital Market Newsletter, there appears to be plenty of capital available and borrowing spreads are tightening though lenders and investors remain defensive on industry sectors they will invest in and deal structure. On the demand side, transactional deal flow has strengthened over the last 60 days with a rush to close deals by yearend, owners are considering minority equity recaps rather than selling into this unsettled market and some are getting on their toes to pursue acquisitions.
As we head into the new year we will be watching whether we are in a U-shaped or W-shaped recovery, the impact of potential additional government stimulus and market support and how lenders and investors deal with companies struggling through Covid as forbearance agreements end.
Founders is in regular contact with lenders and investors across the various capital markets and are happy to be of assistance in providing you, your colleagues and clients out thoughts on specific situations. We hope you will view Founders and our Capital Solutions practice a valuable resource.