How does M&A consulting generally fare in this environment? Pros: lots of struggling/undervalued companies, great lending environment. Cons: cash mgt., prioritizing your own people/biz in tough times

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Typically divestitures increase and fewer mega deals happen. Deals consulting generally does ok in down turns.

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Agreed. Shift in mix of work to more divestitures/carve-outs, compared to boom economies when it’s more acquisitive in nature.

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Private equity may pick up since they’re flush with cash and may want to pick up some distressed assets

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Likely varies firm to firm and depends on:
1) how levered it is - higher leverage makes it harder to pay bills when revenue falls
2) how much cash reserves are on hand - more cash on hand = can weather the storm and can buy up struggling businesses that can’t

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That’s why restructuring and other services under “strategy” (which is where the M&A services can be held as well) usually increase.

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Not that great until market volatility reduces..Once PEs have a sense of market direction, they ll start deploying their commuted capital on new assets or provide liquidity to their Portcos. Then we ll see uptick in consulting services. Till then it will be dull.

Bitch to get financing currently, we are in the crystal ball moment of the environment. PE will be looking at markets, but we won’t see plays till more certainty on end dates for shutdowns.

When that happens, buy buy buy. Cheap assets
Everywhere.

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