Our team, led by Robert I. Kauffman, our Chairman and Chief Executive Officer, has decades of experience in identifying attractive risk adjusted return investments, often created by temporary market disruptions or sector specific changes that require adjustments to business operations or capital structures.
Our strategy is to identify a business combination that we believe can benefit from our experience and strategic guidance, and thus create long term value for our shareholders.
The Covid-19 pandemic has significantly impacted the global economy and the resulting disruption has created a large number of opportunities. Social distancing and stay-at-home orders have impacted businesses. Additionally, the unprecedented fiscal and monetary interventions in response to the crisis have provided needed stimulus and liquidity to the markets, but have also created distortions. We believe the current situation is evolving from a ‘liquidity phase’ to a ‘solvency phase’, as many businesses have been able to borrow to cover short term cash flow shortfalls, but still face substantial revenue reductions or significant operational issues.
As a result, business restructurings have increased and we expect this trend to continue. We believe opportunities exist to target and combine with high- quality businesses that (a) have emerged or are emerging from a restructuring process and are seeking a shareholder base that supports long term growth or (b) have current ownership that is otherwise in transition or desires liquidity. It is essential to our strategy that the target would benefit from becoming a stock exchange listed public company with access to capital markets.