- Companies Seek More Liquidity – As access to capital may decrease in the coming year, companies on the periphery of needing more operations income are reaching out to lenders to capture the full amount of capital they can borrow currently.
- Correction in Valuations of Companies Without Apparent Underlying Assets – Investors are scrutinizing the valuations of companies more closely, particularly those whose probability of success is tied to nascent products or services.
- Operations Right-Sizing is Underway – Companies are reducing inventories and laying off employees as they navigate the global environment of high inflation, challenging supply chains, and pressure on asset valuations.
- Lending Shifts Toward Private Funding – As funding from regulated lenders becomes more difficult for companies to access due to challenging valuations, they are turning to private lenders that have more latitude in structuring loans.
- Pandemic Driven Product Gluts and Shortages Still Moving Through the Global Economy – This trend stokes uncertainty in supply chains, pricing, and access to goods, making it difficult for some companies to move forward from the COVID-19 crisis.
About the Authors
Greenberg Traurig, LLP’s internationally recognized Financial Restructuring Practice provides clients with deep insight and knowledge acquired over decades of advisory and litigation experience. The group has a broad and diverse range of experience developing creative and effective strategies to address the highly complex issues that arise in connection with in- and out-of-court reorganizations, restructurings, workouts, liquidations, and distressed acquisitions and sales, both domestically and in cross-border proceedings. With offices in commercial centers across the United States and throughout the world, we utilize our invaluable business network to offer critical advice and counsel to multiple constituencies in numerous insolvency situations.