Aggregate consumer debt, especially credit card debt, can be an early indicator to economic retraction, and it's currently at an all-time high. Additionally, 95% of CEOs expect to spend part of 2023 in a recession. Not to mention, Congress / Biden have yet to negotiate the debt ceiling. How are searchers and acquirers thinking about these conditions and what terms are they negotiating to de-risk deals?
From my deal facilitation standpoint, I'm seeing much more delayed consideration in the form of earn-outs and seller financing than I saw a year ago. One of my clients negotiated forbearance on his seller note if earnings dropped below a pre-determined amount (hasn't been needed though). Generally speaking, I'd love to hear other creative measures for managing economic risk?
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