PE Firms Get Creative With Add-on Deal Structures
Private Equity Co-chair Matthew T. Simpson spoke to Mergers & Acquisitions about the current dealmaking environment.
Matt shared, "I think a lot of private equity sponsors are taking a look at their portfolio companies and they’re doing two things: One is they’re looking for strong fundamental businesses that they could add as a platform but with reduced leverage. Sponsors that are in a position to do these deals with less debt or defer the debt at closing that’s really putting them at a comparative advantage." He continued and explained that the other key features he is noticing are bolt-ons and add-on transactions.
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