April 21, 2020

Webinar Recap: The Impact of COVID-19 on the Private Equity Community

Private Equity

Webinar Materials:

Now more than ever, dealmakers seek guidance on how to best navigate our “current normal.” While many private equity groups collected valuable lessons from past downturns, this crisis looks and feels different…and therefore we need to act and react differently.

While the deal making community is not gathering in Vegas, we’ve put together a series of webinars featuring a seasoned group of professionals in the PE, investment banking, accounting, insurance and legal industries to provide insights into the current market and other key issues facing all of us. Our panel includes professionals from the webinar’s co-sponsors Aon, Marcum LLP and Pepper Hamilton, featuring investment banking perspectives from Raymond James and panel moderation by NewSpring Mezzanine.

Our first in this webinar series will provide an overview as to what we are seeing in the marketplace re: terms, valuation and activity.

TOPICS

PRIVATE EQUITY PERSPECTIVE

Impact on deal flow in post COVID-19 world
Due diligence considerations
Deal structures going forward

INVESTMENT BANKING PERSPECTIVE

COVID-19 impact on deal flow, processes, and closings (including emerging structural preferences)
Capital considerations in the face of liquidity shortfalls, debt maturities, financial covenant concerns, and deteriorating financial metrics
M&A market outlook, including where we see opportunity

INSURANCE PERSPECTIVE

Insurer responses to COVID-19 crisis in the context of Reps and Warranties insurance
What to expect in underwriting both for active deals as well as signed deals moving forward to close in this “current normal”.

LEGAL PERSPECTIVE

Contractual considerations: Force majeure provisions, MAC clauses, and other contractual considerations
Overview of relevant Stimulus Programs and other considerations:
- PPP (and the affiliate rules problem)
- Main street lending
- NOL carry backs (and the question of who (“owns/controls” these refunds)

ACCOUNTING PERSPECTIVE

Availing the new tax relief legislation to get cash in the hands of portfolio companies and PE investors
Interplay between tax relief with PPP loans
Tax impact of debt modifications and buybacks

SPEAKERS

Allyson Coyne, Managing Director & Chief Broking Officer, Aon M&A and Transaction Solutions
Bruce K. Fenton, Chair, Pepper Hamilton Private Equity Practice Group
Andrew Finkle, Partner, Marcum LLP Transaction Advisory Services Group
David Clark, Managing Director, Head of Financial Sponsors Group Raymond James
Steve Hobman, General Partner, NewSpring Mezzanine (MODERATOR)