01
Cash Flow or Liquidity Risk
Cash flow and liquidity challenges are particularly acute in certain industries, and this is not expected to change down the road.
Intensified macroeconomic headwinds have rippled through the markets and continue to create a new reality for financial sponsors that is challenging every stage of the investment lifecycle — from deal opportunities and financing to portfolio management and exit. To create value during economic uncertainty, financial sponsors must navigate evolving risks with agility, discipline and a broad perspective. By approaching fund structures and capital and asset management creatively, financial sponsors can effectively navigate increasing uncertainty to turn risk into opportunity.
Aon helps secure investments, maximize deal value and drive transaction success by solving wide-ranging issues facing financial sponsors throughout the deal lifecycle and across their portfolio companies by leveraging data, insurance-backed capital instruments and market leading consultative capabilities. We provide clients the unique ability to manage wide-ranging solutions effectively and efficiently with a single contact and source of execution.
According to our latest Global Risk Management Survey, the biggest risks facing the Financial Sponsors industry include:
01
Cash Flow or Liquidity Risk
Cash flow and liquidity challenges are particularly acute in certain industries, and this is not expected to change down the road.
02
Capital Availability
Unexpected changes in the availability of capital can make it difficult for organizations to meet outstanding obligations or operational goals.
03
Interest Rate Fluctuation
Volatile interest rates can quickly cause debt repayments to become unaffordable.
04
Asset Price Volatility
Swings in asset prices can be caused by several factors, including geopolitical volatilty, reputational damage and changing macroeconomic conditions.
05
Business Interruption
Previously, companies planned for isolated events. But the risk landscape is now more interconnected than ever before.
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