Current types of deals
While I know the dealflow has slowed down substantially over the last 8 months, I am curious to know what kind of deals you are currently working on for your clients?
What (if any) potential benefits can you see in the M&A markets?
It seems with no access to leverage, there is not much going on.
I assume IPOs are almost totally out of the question because of the plummeting stock market.
What about stock repurchases?
Thanks for the input
Investment grade debt market have thawed, and I read that these issuances are higher than last year (maybe Thompson league tables). But I think I read wrong... Maybe higher than last quarter...
Convertibles will probably take place of pure equity
there is M&A occuring albeit distressed M&A. I work in restructuring so its usually a sales process for companies undergoing restructuring.
Advising/negotiating for debt buyback terms, since loans, bonds, etc. are trading way below par, some corporates would like to purchase their obligations now with the cash they have on their balance sheet.
Stock repurchases can be done with cash on the balance sheet, but more often than not, its done by raising debt and buying back stock.
With high yield/anything below investment grade debt markets "frozen," its a pain to get things done. Companies usually liquidate if they are unable to find a buyer (buyer can't get the financing) or find exit financing to undergo a reorganization.
The world has changed. And we must change with it.
There has also been a fair amount of hostile activity as companies with strong balance sheets are trying to acquire weaker competitors, but those competitors do not want to sell out at such a low valuation relative to last year. The Exelon NRG deal is a good example of that.
Private placements.
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