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M&A monitor

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. 

glove on bin

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.