Proprietary

MIDDLE MARKET

Database

Q1 2020 | COVID-19 Edition

Valuations & Opinions Group

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Inside this Issue

With leverage covenant testing and expected declines in performance on the horizon, Q2 2020 will be a true test of company performance.

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  • Key Takeaways
  • Overview of Q1 2020 Database
  • Lincoln Middle Market Index
  • Enterprise Value
  • Fundamental Performance
  • Credit Market Environment & Fair Value Trends
  • Valuations & Opinions Group Key Contacts

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Connect with the Valuations & Opinions Group

Inside this Issue

Lincoln International observes declines in enterprise values and private credit instruments in the first quarter of 2020 with no safe haven industry.

Click below to navigate to each page

  • Key Takeaways
  • Overview of Q1 2020 Database
  • Lincoln Middle Market Index
  • Enterprise Value
  • Fundamental Performance
  • Credit Market Environment & Fair Value Trends
  • Valuations & Opinions Group Key Contacts

Next Page

Key Takeaways in the First Quarter of 2020

The average enterprise value multiple decreased for the first time since Q1 2016, representing the largest quarter-over-quarter change over the past decade…
…and the decline in enterprise value multiples was observed across each industry…
…with no safe haven industry in reference to fair value declines from Q4 2019.
As credit spreads widened, the median loan price for senior and junior securities declined…
…and based on re-forecasted budgets, portfolio companies’ earnings are expected to significantly decline in 2020…
…which has led to an increase in revolver draws amidst present and future liquidity needs.