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Alvaro Membrillera Discusses Private Equity Boom in U.K. With Treasury Today
March 17, 2022
Corporate partner Alvaro Membrillera was quoted extensively in a Treasury Today article discussing the implications for treasury teams as private equity firms increasingly scoop up U.K.-listed companies. In “Be quick, be good, be gone: the treasury mantra when private equity is at the helm,” Alvaro pointed to some of the driving factors behind the current surge in take-private acquisitions, and the resulting changes to a company’s cash management, governance and banking relationships.
“There used to be a premium for being listed but now the premium isn’t there and even a discount may apply,” he said. “If you have a company going through a dual-track sale process, it is no longer a surprise that a trade sale achieves a higher valuation than the IPO.”
The cash buffers that provide comfort to many listed companies’ balance sheets are quickly optimized, often replaced with a revolving credit facility to fund operations, Alvaro added.
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