Private equity firms reportedly are facing challenges regarding liquidity and exits.
In the U.S., there are more than 13,500 unsold companies in private equity portfolios, including 2,563 consumer products and services companies and 1,536 health care companies, according to The Guardian.
Private equity funds are sitting on a “record number of unsold companies, many of which they’ve been unable to sell … or at least unable to sell at the prices that they’re looking for,” said Jim Baker, the executive director of the Private Equity Stakeholder Project.
Audrey Stienon, industrial policy program manager at Open Markets, said there is concern “eventually, the companies that have accumulated this much debt are going to collapse.”
Industry executives say they have the resources to help businesses handle any upcoming crisis.
“Private equity-backed businesses face the same higher interest rates and economic pressures as other companies, but they also have committed investment partners that can provide additional capital and keep investing through difficult periods,” said Will Dunham, president and CEO of American Investment Council.
When looking to sell your roofing company, it is important to consider the risks and benefits of the various paths you could take, which includes selling to a private equity firm. To learn more, revisit Professional Roofing’s column, “Seller beware!”
Be sure to also check out our “RoofTalk with NRCA” episode, “Is it all about the money?”
