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Covid-19 leads to surge in business caution over ‘carve-out’ sales

Industrials, retail, and business services sectors, are expected to be the most likely targets

The economic turmoil brought on by the Covid-19 pandemic is making companies looking to sell parts of their businesses question the ability of buyers to conclude these “carve-out” deals.

Nearly half of respondents to a survey by listed private equity firm Aurelius Equity Opportunities said that making sure the bidder can actually execute the transaction is currently the most important consideration when choosing a buyer. Last year, this was a focus for only 7% of those surveyed.

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