Weathering the COVID-19 Crisis

Turning to Significant Stockholders for Support May Carry Substantial Benefits, but Navigating to a Safe Harbor Requires Careful Steering

The significant economic dislocation and sustained market volatility caused by the COVID-19 crisis are causing certain companies to seek financial support from the most familiar sources—significant existing investors. Amid the current backdrop, such investors may be the only viable sources of critical and timely financial support.

While the COVID-19 crisis presents unique challenges relative to the 2008 financial crisis, certain key themes are likely to reemerge, including an uptick in the following types of transactions:

  • Related party financings/recapitalizations to shore up the balance sheet, address liquidity constraints, or pursue opportunistic acquisitions or initiatives
  • Related party mergers
  • Significant stockholder-led take-privates

Please download our article to learn more.

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Contacts

Rick Lacher Managing Director, Co-Head, Board and Special Committee Advisory
Jennifer Muller Managing Director, Co-Head, Board and Special Committee Advisory
Youmna Salameh Director, Board and Special Committee Advisory
Robert Rosenberg Managing Director, Co-Head, Transaction Opinions
Mark Mikullitz Managing Director, Head of Shareholder Activism

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