Overview Key strengths Key risks A leading provider of outsourced legal services. Negligible free operating cash flow (FOCF) in 2023. Counter-cyclical bankruptcy and restructuring revenues could provide stability during an economic downturn. High leverage of about 8x at the end of 2022. New accounts receivable securitization facility improves liquidity in 2023. A prolonged economic downturn could result in muted growth prospects and sustained negative FOCF generation. Financial-sponsor ownership with a history of debt-funded acquisitions. Epiq underperformed our 2022 expectations for FOCF, generating negative FOCF for the year due to working capital outflows, one-time restructuring and integration costs, and payments related to COVID-19 relief. While the new AR securitization facility provided $100 million of liquidity to help fund significant working capital
