7 Comments
 

Well, based on the most helpful WSO content, it's tough to predict which big shops might struggle in the next downturn. Each recession has its own quirks. For instance, in 2008/9, the big balance sheet banks were hit very hard due to some of the "assets" they had on their balance sheets. This wasn't the case in 2001. So, it all depends on the nature of the recession.

However, it's important to note that boutiques might fare differently. They have leaner teams and their existence won't suddenly be in jeopardy because of a financial crisis. Many have strong restructuring practices which can have a counterbalancing effect.

But remember, this is just a monkey's educated guess. The financial world can be unpredictable, and it's always wise to stay informed and prepared.

Sources: How will boutiques fare in the next downturn?

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 
IntriguedObserver


Falling Adj. EBITDA (although surprisingly roughly in-line with industry), 0.99x Interest Coverage, 7.1x Net Debt to EBITDA ratio... not looking good. Plus if Brookfield is dropping them, other owners may follow suit.

Turns out that when your job isn't one at which you can provide real value relative to rivals, and then you go an fuck over your clients, it has a real negative repercussion!  Who'd have thought!?!

 
Ozymandia
IntriguedObserver


Falling Adj. EBITDA (although surprisingly roughly in-line with industry), 0.99x Interest Coverage, 7.1x Net Debt to EBITDA ratio... not looking good. Plus if Brookfield is dropping them, other owners may follow suit.

Turns out that when your job isn't one at which you can provide real value relative to rivals, and then you go a fuck over your clients, it has a real negative repercussion!  Who'd have thought!?!

That plus generations of inorganic growth… 

 

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