Where have all the distressed deals gone?
It would have been logical to expect the pandemic to drive a wave of distressed deals, but looking at data for transactions involving targets or sellers with debt-to-earnings ratios greater than six - or with non-investment grade debt - so far they’ve failed to materialize.
COVID-19 has not seen distressed M&A rise - for now
This may be because buyers don’t want to own the assets until there’s more clarity over the shape of the recovery. So as restrictions are gradually eased and government financial support is reduced, we may see an uptick later in the year.
- SPACs: the M&A craze that shows no sign of slowing
- What’s driving the SPAC boom?
- SPACs go global
- Countries compete for listings
- The GameStop effect
- China, sanctions and overseas investment
- Where have all the distressed deals gone?
- Explore Q1's top 50
- Global M&A value and volume
- M&A monitor archive