Why I Stopped Drinking Milk: The Impact of Commodities and Currency Pricing on Restructurings

Abstract

Companies facing the twin dangers of rising commodities prices and declining United States currency values are experiencing unexpected threats to their very survival. Inflation is wreaking havoc in a more complex and destructive manner than the conventional concern with consumer prices. The impact can be so sudden that companies that have been steadily profitable for years can find themselves in a struggle for survival in a matter of weeks. Now more than ever, private equity sponsors and lenders may need to consider the causes of a sudden decline if intervention by a financial advisor is to be timely and effective.

TOPICS: Private equity, financial crises and financial market history, manager selection, technical analysis