The challenges of COVID are making financing deals even trickier than normal. Top M&A bankers we have spoken with gave us their perspectives on what sellers and buyers should expect given all the uncertainty.

“There are a lot of twists and turns today,” a mid-West managing director told us. “You may think the company you’re trying to sell is operating at pre-COVID levels, but what happens if this virus stuff backs up? It’s a real risk given the reversed course of new cases across the US.

“In the current climate you don’t want to run a big process,” he continued. “Having dozens of lenders witness softer monthly numbers is not a path to success.”

Another source agreed. “You don’t want to have all the lenders talking to each other, otherwise it’s not a select process. It’s best to keep it to a tight circle. We’re seeing situations where only existing lenders are being asked for term sheets.”