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Advice for Businesses in Dealing with the Expanding Coronavirus Events

Considerations for Private Equity Investors

March 09, 2020

By the Paul Hastings Private Equity Practice

The steps taken across the globe in an effort to contain the COVID-19 outbreak have adversely impacted, and will continue to adversely impact, businesses, capital markets, supply chains, and workforces worldwide. Although the impact of COVID-19 on global private equity activity will take some time to be fully realized, buyers, sellers and borrowers can take certain steps to protect themselves against known and unknown risks associated with the current COVID-19 outbreak.

Considerations in connection with negotiating acquisition documents:

  • Timing

  • Due Diligence

  • Representations and Warranties

  • Material Adverse Effect

  • Interim Operating Covenant

Considerations in financing documents may include:

  • Availability of Acquisition Financing

  • Revolver Availability

  • Financial Covenants

  • Compliance

  • Financial Reporting

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