By Stephan Millard, Product Marketing
Being prepared for a restructuring transaction in today’s economy makes sound business sense. That was one of the conclusions of the panel discussion Datasite held on our June 17th Webinar “Prepare Your Transaction: Refinancing. Restructuring. Rebuilding.” Moderated by myself, Stephan Millard, we had three experts on restructuring provide advice on how to assess your current circumstance, how to pick the best strategies for your business and what you can do today to be prepared for restructuring.
The global economy is not like any we have seen in recent times. The corona virus pandemic has had a major impact on economies around the world. In the US, business bankruptcies are up by 48 percent in the US in May and many companies around the globe in segments like retail, hospitality and others are struggling. All of our panelists and over nine in ten (93%) of the respondents on the webinar said they expect the need for restructuring transactions to increase in the next 12 months.
The first thing companies need to do is assess their current circumstance. How? All agreed - find advisors that know restructuring and who have been in the trenches doing the hard work with companies around the world. Don’t try to go it alone.
What next?
Success picking the right strategy, as Joseph Weisglass described, can be a like a football game. A good advisor is like a good quarterback. They have a range of plays at the ready from conservative plays to the ‘hail mary’ play. Your advisors know what play to call because they are thinking about the other teams on the field and how they will react.
It is also important to know how many teams are on the field, as Tal Unrad pointed out. As companies become less solvent, they may also have the creditors on the field. This can change the nature of how the play will work and which plays are available.
Preparation is about taking the initiative, being proactive and driving to your preferred outcome.
What can you do now? Andrew Grimstone offers some sound take aways:
To hear what else the experts had to say, watch our on-demand webinar. Find out what you can do now to be ready for restructuring, when should you engage with key advisors, and the tools available to help you through the process.
It’s your forum to be known and to get to know dealmakers. To solve problems. Make improvements. Share experiences and expertise. Make a difference and network at all levels.
Share information securely. Manage content easily. Simplify processes. Effectively work through corporate restructuring and reorganization. Handle the most sensitive of events with the precision you need.
To execute a successful deal, you need to be prepared and deal ready. AI guides you through structuring your index, identifying relevant categories and redacting sensitive information.
With the change in market conditions over the last year (increased inflation, interest rates etc.), there is concern that companies who went public via a SPAC in 2020 and 2021 will not be able to continue their business operations due to a lack of free cash flow or will face de-listing because their stock is not in compliance with the NYSE or NASDAQ requirements. These companies may need to explore alternative options, such as rescue capital raises, full company sale to a strategic, bankruptcy, and PE take-private options, etc.
The pandemic saw a growth spurt in digital platforms. Will the tech sector be able to sustain investor interest in the face of challenging macroeconomic dynamics? Learn more about emerging digital transformation stories from APAC in our expert spotlight blog.
With the economy wavering under the strain of inflation, supply chain problems, and the Great Resignation, dealmakers are gearing up for a challenging 2023. Datasite gathered a panel of experts to review what we’ve learned over the past year and what we can do to prepare for the changes ahead.