Private Equity Impact Broadcast Series

 
May 01, 2020

Our lawyers have developed a broadcast series to help you navigate challenges and opportunities in the private equity industry that have emerged during the COVID-19 coronavirus pandemic.

Each broadcast runs approximately 10 minutes. We share insights on the key issues on the minds of our private equity clients, as the coronavirus continues to evolve and impact many aspects of the global private equity industry. 

Latest Broadcast

PPP and UK Support Programs: M&A Considerations, Including the Strategic Use of a Special Indemnity Escrow


(Duration: 12:03; June 5th, 2020)

We discuss considerations and risks that private equity professionals should take into account when acquiring a target company that has received a Paycheck Protection Program (“PPP”) loan or a loan or grant from a U.K. government support program, and how a special indemnity escrow account can help remediate those risks. 

The episode was hosted by Derek Winokur (moderator), an M&A partner in the firm’s New York office, David Miles, a Leveraged Finance partner in the firm’s London office, and Doug Weaver, a Director in Citi Private Bank’s New York office.

Previous Broadcasts

  • Section 363 Sales and Reps & Warranties Insurance: Opportunities and Risks during COVID-19 (Duration: 17:58; May 29, 2020)
    We discuss the benefits and risks associated with sales under section 363 of the US Bankruptcy Code, and discuss some of the options available to purchasers for mitigating those risks with representations and warranties insurance (R&W insurance) and other insurance products.

  • Healthcare Investing for PE: Short-Term Tactics; Long-Term Strategies (Duration: 12:13; April 24, 2020)
    We discuss the impact of the COVID-19 crisis on the healthcare industry, with particular focus on the consequences for private equity healthcare investors and their portfolio companies.

  • What PE Firms Should Know About the UK Government Stimulus Package (Duration: 14:06; April 9, 2020)
    The UK government has introduced a number of initiatives to help individuals and businesses during the COVID-19 pandemic. We summarize the assistance available under these initiatives and discusses their application to PE firms and their portfolio companies.

    Key COVID-19 Tax Considerations for PE Professionals (Duration: 11:34; April 9, 2020)
    We give a high-level overview of important tax changes stemming from the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) and other recent important tax changes, with particular emphasis on their implications for private equity owned portfolio companies.

  • Management Equity Is Underwater from the Pandemic; What Do We Do Now? (Duration: 10:27; April 24, 2020)
    We discuss the techniques that can be implemented to address underwater management equity awards at private equity portfolio companies.

    What PE Firms Should Know About the UK Government Stimulus Package (Duration: 14:06; April 9, 2020)
    The UK government has introduced a number of initiatives to help individuals and businesses during the COVID-19 pandemic. We summarize the assistance available under these initiatives and discusses their application to PE firms and their portfolio companies.

    Labor & Employment Challenges for PE during the COVID-19 Pandemic (Duration: 13:33; April 3, 2020)
    We discuss the implementation of global shutdown orders, considerations for businesses managing remote workforces, and options for reducing operating costs, with particular emphasis on implications for private equity portfolio companies.

  • Is Your Debt Trading Below Par? Have You Thought About Buying it Back? (Duration: 12:57; May 15, 2020)
    We discuss how the decline in the trading prices of bank loans and corporate bonds resulting from the COVID-19 pandemic may present opportunities for companies to deleverage their balance sheets by buying back their own debt and for PE sponsors to shore up the stability of their portfolio companies while maintaining their liquidity by reducing or restructuring debt within their investment portfolio.

    What PE Firms Should Know About the UK Government Stimulus Package (Duration: 14:06; April 9, 2020)
    The UK government has introduced a number of initiatives to help individuals and businesses during the COVID-19 pandemic. We summarize the assistance available under these initiatives and discusses their application to PE firms and their portfolio companies.

    Paycheck Protection Program: Considerations for PE Portfolio Companies (Duration: 11:04; April 6, 2020)
    We give a high-level overview of the Paycheck Protection Program (''PPP'') created by the Coronavirus Aid, Relief and Economic Security Act (''CARES Act''), with particular emphasis on its implications for the eligibility of private equity portfolio companies.

    EBITDA Add-Backs in the Time of COVID-19 (Duration: 11:53; March 27, 2020)
    We discuss whether costs and lost revenue related to the COVID-19 pandemic can be added back to EBITDA, focusing on middle-market loans to sponsor-backed companies in the U.S. and European markets.

    Pandemic Pandemonium – Should I Draw Down My Revolver? (Duration: 15:43; March 20, 2020)
    We discuss a myriad of issues facing PE sponsors and their portfolio company management teams in determining whether to draw upon portfolio company revolving credit facilities as well as the potential impact on lender relationships and any further capital support.

  • How to Operate in the World of Shutdown Orders by the Government (Duration 10:46; March 20, 2020)
    We discuss how private equity firms can continue to operate in a world of shutdown orders by the government.

    Deal Disputes in the Time of COVID-19 (Duration: 10:05; May 1, 2020)
    We discuss the wave of disputes that has arisen from deals signed prior to the onset of the COVID-19 crisis, with particular emphasis on the basis of these disputes, their merits and key takeaways for private equity deal-making going forward. 

    The Proliferation of Foreign Investment Controls (Duration: 11:24; May 1, 2020)
    We discuss the acceleration in foreign investment controls being prompted by the COVID-19 pandemic. 

  • Section 363 Sales and Reps & Warranties Insurance: Opportunities and Risks during COVID-19 (Duration: 17:58; May 29, 2020)
    We discuss the benefits and risks associated with sales under section 363 of the US Bankruptcy Code, and discuss some of the options available to purchasers for mitigating those risks with representations and warranties insurance (R&W insurance) and other insurance products.

    Is Your Debt Trading Below Par? Have You Thought About Buying it Back? (Duration: 12:57; May 15, 2020)
    We discuss how the decline in the trading prices of bank loans and corporate bonds resulting from the COVID-19 pandemic may present opportunities for companies to deleverage their balance sheets by buying back their own debt and for PE sponsors to shore up the stability of their portfolio companies while maintaining their liquidity by reducing or restructuring debt within their investment portfolio.

    Terminating Deals: A European Perspective (Duration: 8:21; May 15, 2020)
    We discuss the issues behind deal disputes currently taking place in Europe, with particular emphasis on the implications of invoking (or seeking to invoke) material adverse change conditions, interim operating covenants and tactical litigation for both public and private M&A transactions.

    Deploying Capital in the Public Market: Take-Privates and PIPEs (Duration: 13:35; May 8, 2020)
    We discuss the wave of disputes that has arisen from deals signed prior to the onset of the COVID-19 crisis, with particular emphasis on the basis of these disputes, their merits and key takeaways for private equity deal-making going forward.

    Deal Disputes in the Time of COVID-19 (Duration: 10:05; May 1, 2020)
    We discuss the wave of disputes that has arisen from deals signed prior to the onset of the COVID-19 crisis, with particular emphasis on the basis of these disputes, their merits and key takeaways for private equity deal-making going forward. 

    Healthcare Investing for PE: Short-Term Tactics; Long-Term Strategies (Duration: 12:13; April 24, 2020)
    We discuss the impact of the COVID-19 crisis on the healthcare industry, with particular focus on the consequences for private equity healthcare investors and their portfolio companies.

    Salvation Capital: Prudent Investment or Salvation Sinkhole? (Duration: 13:17; April 17, 2020)
    We give a high-level overview of important factors that should be analyzed when considering and structuring capital infusions to fund a portfolio company’s operations and/or refinance its indebtedness in these uncertain times.

    Structured Equity: A Flexible Capital Solution Poised for Growth (Duration: 9:38; April 17, 2020)
    We discuss considerations for private equity clients when investing in structured equity — the portion of the capital stack subordinate to the debt and senior to the common equity — and the potential evolution of structured equity investments, which may become increasingly attractive in light of the market response to COVID-19.

    Has the Rep and Warranty Insurance Market Remained Healthy During the Pandemic? (Duration: 9:22; April 17, 2020)
    We break down the availability of representations & warranty insurance during the COVID-19 pandemic and initial trends in coverage, premiums and exclusions.

    What PE Firms Should Know About the UK Government Stimulus Package (Duration: 14:06; April 9, 2020)
    The UK government has introduced a number of initiatives to help individuals and businesses during the COVID-19 pandemic. We summarize the assistance available under these initiatives and discusses their application to PE firms and their portfolio companies.

    Labor & Employment Challenges for PE during the COVID-19 Pandemic (Duration: 13:33; April 3, 2020)
    We discuss the implementation of global shutdown orders, considerations for businesses managing remote workforces, and options for reducing operating costs, with particular emphasis on implications for private equity portfolio companies.

    Waivers, Amendments and Forbearances - the Short Term Remedy for the COVID-19 Credit Abyss (Duration: 14:10; April 3, 2020)
    We explore issues facing private equity sponsors and their portfolio companies under their credit and loan facilities that may have arisen due to the dramatic economic changes and dislocations caused by the COVID-19 pandemic, and suggest ways that borrowers can navigate those challenges.

    Strategies for Bridging Valuation Gaps in the COVID-19 Era (Duration: 12:22; March 27, 2020)
    We discuss traditional strategies for bridging valuation gaps as well as some of the early valuation trends being seen in the COVID-19 dealmaking era.

    M&A Diligence Considerations During the Pandemic (Duration: 11:47; March 27, 2020)
    We discuss deal diligence during the COVID-19 coronavirus pandemic, including what to focus on in new deals, how to manage existing deals that have already signed but not yet closed, and what legal protections and other considerations should be taken into account for deals that are expected to sign in the current environment.

    EBITDA Add-Backs in the Time of COVID-19 (Duration: 11:53; March 27, 2020)
    We discuss whether costs and lost revenue related to the COVID-19 pandemic can be added back to EBITDA, focusing on middle-market loans to sponsor-backed companies in the U.S. and European markets.

    Pandemic Pandemonium – Should I Draw Down My Revolver? (Duration: 15:43; March 20, 2020)
    We discuss a myriad of issues facing PE sponsors and their portfolio company management teams in determining whether to draw upon portfolio company revolving credit facilities as well as the potential impact on lender relationships and any further capital support.

    M&A MAE Clauses and Deal Certainty (Duration: 11:03; March 20, 2020)
    We discuss the impact that the pandemic may have on M&A MAE clauses and overall deal certainty.

    How to Operate in the World of Shutdown Orders by the Government (Duration 10:46; March 20, 2020)
    We discuss how private equity firms can continue to operate in a world of shutdown orders by the government.

  • The Proliferation of Foreign Investment Controls (Duration: 11:24; May 1, 2020)
    We discuss the acceleration in foreign investment controls being prompted by the COVID-19 pandemic. 

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