Corporates cosy up as private equity gets cold feet

“Debt providers are becoming more selective about the opportunities they are willing to support and are now concentrating on companies with good forward earnings visibility”- James Stewart, ECI

“Debt providers are becoming more selective about the opportunities they are willing to support and are now concentrating on companies with good forward earnings visibility”
James Stewart, ECI

While UK corporates are busy digging deeper and deeper into their pockets to finance acquisitions, private equity firms have shifted their focus to selling. Given private equity’s excellent track record for buying low and selling high, and corporates’ rather less enviable reputation for value destructive mergers, should private equity’s retreat make corporates think twice? UK M&A is soaring.

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