Industry Consolidation -- A Quiet Buyer's Market

“Many sellers are in financial distress, actual or imminent, and several that do not think they are in distress are about to be, because their banks and other creditors have zero tolerance for covenant violations and/or defaults,” Cohen says. “Few buyers are interested in putting their own survival in jeopardy by buying a struggling competitor. But, for buyers willing to evaluate such opportunities, the negotiations are direct and to the point. No one can afford to waste time posturing. We are looking at many of these types of opportunities and expect to be looking at many more.”