Chicago (May 9, 2023) What’s the state of the M&A market given current economic pressures? Sandeep Gupta, Managing Partner of Novo Advisors, LLC spoke during a panel discussion on April 26, “M&A in an Uncertain Market,” hosted by the Chicago chapter of the Association for Corporate Growth at The Metropolitan Club.
“Given the prevalence of excess inventories, organizations must look at their assets for possible liquidity strategies and find ways to create additional cash flow,” said Gupta. “Liquidity strategies will drive M&A transactions” while “the cost of capital is going up, and that in turn causes valuations to go down,” he added.
Gupta was joined by middle-market professionals Penny Fine, Managing Director, CIT Northbridge; Brent Willson, Principal, Center Rock Capital Partners; and Michael Fixler, Senior Managing Director, B. Riley Securities, who also moderated.
As a skilled financial advisory group guiding distressed companies to resolution and stability, Novo Advisors frequently helps clients design M&A strategies and works closely with investment bankers and capital providers.
The group discussed changes in M&A volume since the pandemic, the state of various industries, as well as investment opportunities, seller expectations and thoughts on the balance of this year and beyond.
Change has been a given since the pandemic. In the last six to nine months, the panelists agreed that M&A volume has slowed — with various industries still experiencing Covid disruption, namely continued supply chain challenges topped by inflation and Russia’s war with Ukraine.
Management must be very decisive. They must act quickly to liquidate assets or do anything they can to thoughtfully close the spigot on cash outflows.
Sandeep Gupta
Managing Partner, Novo Advisors
M&A activity is taking place in the automotive and aerospace industries, said Gupta. In other industries such as healthcare, organizations are contending with high labor costs; CPG companies are sitting on excess inventories; and firms selling commodity goods have likely overpaid for needed resources, he explained. Panelists concluded that some industries like CPG and retail are likely to see long-term changes in consumer behavior.
Gupta’s advice to companies facing these strains? “Management must be very decisive. They must act quickly to liquidate assets or do anything they can to thoughtfully close the spigot on cash outflows.”
Panelists agreed that given the higher cost of debt, along with higher wages and cost of goods sold, business owners are more likely to encounter problems growing or managing operations at some point, requiring expert analysis and advice.
Novo Advisors currently sees strong interest in its business plan evaluation services. Through this immersive analysis, company leaders are guided in understanding what’s working and what isn’t, and if any adjustment or “cures” are needed.
Right now, some businesses that may consider selling are waiting for a market correction, while others must work to stay liquid or improve leverage rates against EBITDA.
Gupta agreed with the panel’s assessment that some companies are over-levered against EBITDA, noting “it can take quite a bit of time for business owners to recognize potential problems.”
Although no one can accurately predict the future, Gupta believes interest rates will remain high, and that is even more reason for companies and boards to remain diligent.
“Leadership must be proactive to manage through these difficulties,” said Gupta. Having an external expert like Novo Advisors analyze — and potentially challenge — the facts can bring a fresh perspective on how a business is performing, its operational efficiencies, financial stability, and a host of other factors, leading to new solutions that can effectively carry the company through a tough economic environment.
Gupta cautioned business leaders to address these factors sooner versus later, as “waiting will only make the challenges far worse.”
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For media inquiries and to discuss Novo Advisors’ M&A or other expert advisory services, contact Anupy Singla at anupy@novo-advisors.com or 312-961-2565.
Novo Advisors (Philadelphia) May 4, 2023: Thank you to everyone who made it to Steak 48 on Thursday to help celebrate our growing Philadelphia presence. Claudia Springer (Principal – Philadelphia) is our contact in the area. Sandeep Gupta (Founder & Managing Partner – Chicago), Tom Caulfield, (Principal – Chicago), Nick Mungor (Partner – Chicago) were excited to meet everyone. If you were not able to attend, we missed you and look forward to seeing you at our next event.
Presented by ACG Chicago | Association for Corporate Growth
April 26, 2023
11:00 am – 1:00 pm
The Metropolitan Club – Willis Tower
233 S Wacker Dr, Chicago, IL 60606
ACG Chicago presents a panel of leading middle market deal professionals to discuss what they are seeing from an investment perspective in an increasingly distressed economic environment and what potential opportunities and pitfalls are out there.
Sandeep Gupta
Managing Partner
Novo Advisors
Sandeep Gupta has spent more than two decades guiding clients from high pressure, high stakes financial challenges to best-case outcomes. His areas of expertise include performance improvement, turnarounds, interim management, bankruptcy and restructuring, mergers and acquisitions, and asset divestitures. Before founding Novo Advisors, Sandeep spent five years as Managing Director in FTI Consulting’s Corporate Finance group. He was also a lead restructuring consultant for Silverman Consulting for eight years, and an operational and strategy consultant at Arthur D. Little for two years. Additionally, Sandeep has six years of experience working in the energy industry as an engineer.
Penny Fine
Managing Director
CIT Northbridge
Penny Fine is a Managing Director at CIT Asset Management where she is responsible for driving the CIT Northbridge Credit LLC origination efforts for a broad range of flexible asset-based debt solutions tailored to middle-market companies. CIT is a division of First Citizens Bank. Prior to joining the CIT Northbridge team, Penny was a business development officer at Huntington Business Credit and previously, Penny was Midwest region head for Chase Business Credit, a division of JPMorgan Chase. Before JPMorgan Chase, she was an executive director of Restructuring Services at Capstone Advisor Group consulting on solutions for lenders and investors in distressed situations. From 2005 to 2008, Penny served as executive vice president and head of the National Restructuring Group at CIT. Prior to joining CIT in 2005, Penny held various positions in lending at GE Capital and Heller Financial and started her career at Arthur Andersen in public accounting. Penny earned her Masters of Business Administration from the University of Chicago and her B.S. in Accounting from the University of Illinois where she passed her Certified Public Accountant Examination. Penny is a member of the Turnaround Management Association and Secured Finance Network.
Michael Fixler
Senior Managing Director
Riley Securities
Michael Fixler has more than 25 years of experience in advising companies and their stakeholders in a variety of transactions related to mergers and acquisitions, capital raising and special situations, including bankruptcy cases. Advising clients from both public and private companies, institutional investors, statutory committees, and special situation buyers/investors, Mr. Fixler’s deep experience includes crafting and executing a variety of strategic transactions to maximize value for his clients. Mr. Fixler has been named one of the “People to Watch – Business Professionals Making Their Mark” by Turnaround & Workouts Magazine and selected by The M&A Advisor among its “40 under 40” professionals. Prior to legacy FocalPoint, now B. Riley Securities, he was a Managing Director at Variant Capital Advisors (affiliate of Conway MacKenzie) and a partner at Candlewood Partners. Prior to corporate finance, he practiced corporate and securities law in private practice and then joined one of his clients where he served as general counsel and also led the company’s corporate development efforts, ultimately resulting in the sale of the company to a strategic buyer. Mr. Fixler is a member of the Turnaround Management Association, American Bankruptcy Institute and Association of Corporate Growth. He also serves on the Chicago/Upper Midwest Regional Board of the Anti-Defamation League. Michael received his Juris Doctorate degree from Case Western Reserve University and his Bachelor of Business Administration from the University of Miami.
Brent Willson
Principal
Center Rock Capital Partners
Mr. Willson is a Principal at Center Rock Capital Partners with 15 years of private equity, investment banking and operations experience. Mr. Willson has a B.S. in Engineering from Northwestern University and an MBA from the Stanford Graduate School of Business.
Registration is closed for this event.
Sandeep Gupta, Managing Partner, Rian Branning, Partner, Tom Caulfield, Principal, and Claudia Z. Springer, Principal will be representing our firm at the 2023 TMA Distressed Investing conference in Las Vegas from January 31 – February 3.
The 2023 TMA Distressed Investing Conference is the preferred meeting place for corporate restructuring and distressed investing professionals. Connect with capital providers and network with the industry’s leading professionals. Nearly 900 top dealmakers in the distressed investing industry will gather for live networking, professional development, and dealmaking.
Schedule time with one of our seasoned, senior-level industry pros to meet up and discover synergies. We look forward to connecting with many of the attendees during our time in Las Vegas.
Sandeep Gupta
Founder & Managing Partner
312-961-6854
SGupta@novo-advisors.com
Rian Branning
Partner
312-402-2982
RBranning@novo-advisors.com
Tom Caulfield
Principal
847-997-5017
TCaulfield@novo-advisors.com
Claudia Z. Springer
Principal
215-896-3775
CSpringer@novo-advisors.com
At Novo Advisors it’s not just about crunching numbers. It’s also about tapping into our creative sides. What better way to do just that than a show at nationally acclaimed ‘The Second City’? We started with dinner and drinks and then moved into their main stage for a show that was smart, funny, and creative. After the few difficult years we’ve all experienced, it’s important to not only get together — it’s important to laugh together. This annual event enables us to meet our clients’ spouses and significant others and connect on a deeper and more personal level. At Novo we’re all about creating better relationships with our partners, clients, and beyond.
Claudia Springer — mediation practice head at Novo Advisors and retired Reed Smith partner who focused on restructuring and bankruptcy law — joined Reed Smith partner Keith Aurzada in this podcast to tackle the subject of mediation in difficult financial disputes. Claudia shares insight into how mediation helps parties understand the value of settlement and resolution, over allowing important disputes to linger.
Sandeep Gupta, Managing Partner, Tom Caulfield, Principal, Rian Branning, Partner, and Claudia Z. Springer, Principal will be representing our firm at these two conferences in Las Vegas, from February 8-11.
SFNet’s Asset-Based Capital Conference offers outstanding networking opportunities, exciting keynote speakers and insightful panels geared specifically for asset-based lenders in the capital markets, bringing together the decision makers who get deals done.
The TMA Distressed Investing Conference is the preferred meeting place for corporate restructuring and distressed investing professionals. Connect with capital providers and network with the industry’s leading professionals. Over 700 top dealmakers in the distressed investing industry will gather for live networking, professional development, and dealmaking.
Schedule time with one of our seasoned, senior-level industry pros to meet up and discover synergies. We look forward to connecting with many of the attendees during our time in Las Vegas.
Sandeep Gupta
Founder & Managing Partner
312-961-6854
SGupta@novo-advisors.com
Rian Branning
Partner
312-402-2982
RBranning@novo-advisors.com
Tom Caulfield
Principal
847-997-5017
TCaulfield@novo-advisors.com
Claudia Z. Springer
Principal
215-896-3775
CSpringer@novo-advisors.com
Philadelphia, May 18, 2021. Novo Advisors, a premier Chicago-based turnaround consulting firm, today announced that restructuring and bankruptcy attorney and mediator Claudia Z. Springer has joined the firm. In addition to starting Novo’s mediation practice, Ms. Springer will head up the firm’s expansion into Philadelphia, a new market for Novo, which currently has offices in Chicago, Denver, New York, and Atlanta.
“Claudia is a creative thinker, a great listener, is extremely thoughtful and comes up with creative solutions to resolve conflicts,” said Sandeep Gupta, Founder & Managing Partner of Novo. “In the financial world, time is money and someone who can resolve disputes quickly is a benefit to all parties and will be a strong asset to our firm and to our clients.”
Ms. Springer brings with her over four decades of experience in financial conflict resolution.
“Novo is a seasoned financial partner and a perfect complement to my skills,” said Springer. “Much of the challenge in the financial space is assessing both current and future value and trying to predict outcomes. The combination of my legal skills and the financial expertise of my new colleagues will add value in both mediations and working with financially challenged businesses.”
I am delighted to join the firm and look forward to helping clients with their challenges.”
Claudia Z. Springer
Novo Advisors is a business transformation partner — specializing in restructuring and performance improvement — offering middle-market clients big firm experience with boutique agility, and the opportunity to work with a team of seasoned, senior-level industry pros dedicated to delivering value every step of the way. Headquartered in Chicago and founded in 2012 by Gupta, Novo Advisors focuses on businesses generating between $25 million and $1 billion in revenue.
Prior to joining Novo, Ms. Springer was a partner at Reed Smith for almost twenty years, where she practiced restructuring and bankruptcy law. She has been acknowledged as one of America’s leading insolvency and corporate restructuring attorneys by Chambers USA: America’s Leading Business Lawyers every year since its initial publication in 2003. She was one of the youngest inductees in the American College of Bankruptcy, where she served on its Board for two terms and currently heads up a committee. In addition, Ms. Springer has been recognized as one of the nation’s top restructuring and bankruptcy lawyers by America’s Best Lawyers and America’s Best Business Lawyers and is a Pennsylvania Super Lawyer.
“After working with Novo Advisors on several assignments while I was at Reed Smith, I saw how our mutual clients benefitted from their hands-on approach and constructive recommendations,” Springer said. I am delighted to join the firm and look forward to helping clients with their challenges.”
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For more information, contact Anupy Singla at (312) 961-2565 or info@novo-advisors.com.
Novo Advisors provides this cash forecast template and video to help you construct a basic cash forecast that you can use to enhance your management of the business and communicate effectively to your stakeholders.
Download the Excel template here
