EquityFC Blog

Where are the deals? | 31 March 2009

Part of the problem seems to be that the recession is fairly localised - for now. While some sectors are getting annihilated (think big-ticket items like cars and plasma screen TVs), an awful lot of businesses are holding on quite well, so they don't need to sell. My nephew, for example, is a supervisor at an events facilities company. They have seen some cancellations or scaling back of budgets - but there's still enough business going on to keep them going. But here's the thing: they're no loner interested in the profitability of contracts - they're focused exclusively on cash flow.

That's interesting news for finance executives. While deal-flow creates upheaval in mid-market businesses - and job opportunities for FCs and FDs, especially in corporate spin-outs where there isn't any strategic financial management - the fact that many businesses are hanging in there but doing things differently (and many PE firms are still controlling businesses they might have exited a year or two earlier in better times) means they need different kinds of financial management expertise.

This is a well-worn theme here at EquityFC - but clichés happen for a reason: they're true. Hence the arrival of EquityInterim, which will cater for precisely that kind of opportunity. Don't count out the prospect of deals coming back later in the year and churning FC and FD posts afresh. But don't ignore the opportunities that exist right now, either.

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