Liquidity challenges in a down market

It’s been tough going for young companies that went public in the past couple of years. Amid heightened financial market volatility, raising additional equity financing has become difficult. At the same time, climbing interest rates have increased the cost of debt financing. If the financial squeeze continues, many newly public companies could face serious liquidity problems.

In a new KPMG report, Liquidity challenges in a down market, we analyzed recent financials of 672 companies that went public in 2020-2021. We found that over half of them are already in distress and are taking various steps to redress their financial situation. Indeed, the road to recovery for these companies begins with a proactive approach to understand their unique situations and crafting a detailed plan to implement the appropriate solution.