Many private equity firms are turning their attention away from mergers and acquisitions to focus on the needs of current portfolio holdings amid the market’s uncertainty around the coronavirus pandemic, according to an article in S&P Global Market Market Intelligence.
Deals that were near closing are being finalized, but others not far along are mostly being delayed or canceled, the article reported. Market participants are taking a “wait and see” approach, Lincoln International Managing Director Chaim Lubin said during a March 24 S&P Global Market Intelligence webinar.
“We’re not going to see too many new deals come into the market for the near term and maybe for the foreseeable future until things clear up,” he said.
Instead, the key focus for many firms will be on liquidity.
“We have seen most portfolio companies looking to draw down any available cash under their financing arrangements,” Linklaters partner Ben Rodham said.
