We expect the second quarter to be down, but not down as much. And then we would expect a reversal and to be able to make up for any of the headwinds that we have from the first half to be made up in the second half. And again, I would say what we’re seeing in terms of consumer strength in our direct to consumer and what we’re hearing from a lot of our partners in terms of our product sell through gives us confidence that once this inventory de stocking is completed, that we should be reverting back to our normalized growth rate.
Cris Kennedy: That’s very helpful. Thank you. And then just a quick update on the healthcare initiative, please? Thanks for taking the questions.
Elias Sabo: Sure. So Kurt here is engaged working with our team members to kind of create a plan for our healthcare vertical a lot of kind of legwork is being done right now, meeting with investment bankers and other intermediaries that are active in the deal market, kind of some of the proprietary opportunities that we have through Kurt are also being explored right now and trying to push those forward. So I would say a lot of legwork is being done to establish that vertical and establish our name in the vertical. I’d say a huge positive for us is a lot of the investment banks that work within the healthcare space are also banks that are active in consumer and industrial, and we have great relationships across those banks. And so, we have not been in healthcare before.
Obviously, that’s a disadvantage. But given the relationships with these influential banks, through our consumer and through our industrial practices, it gives us instant credibility in those markets. So there is a robust pipeline that is being built right now of potential target companies. As Pat said, or I might have said it, one of us said, the M&A market is really weak right now, including in healthcare. I mean, unfortunately, the markets are kind of seized up across kind of all categories. Healthcare may be a little bit better than something like consumer, industrial, but in general, the whole market is just incredibly weak. So right now, we think the best thing is continuing to do the legwork, continuing to build a pipeline of opportunities that we think are coming to market later in the year and starting to reach out and make preliminary contact so that we can tee up some opportunities for later in the year and into ’24.
Cris Kennedy: Great. Thank you.
Operator: Your next question comes from the line of Larry Solow from CJS Securities. Larry Solow, your line is open.
Larry Solow: Elias, just a follow-up on the acquisition question. In terms of — I know you guys don’t have like a target leverage. But still, you’re a little bit levered versus historical numbers, a little 4x. Wouldn’t you probably kind of want to weigh it out a little bit and maybe some opportunistic small acquisitions? But would you be in a position today to really do a large acquisition earlier this year anyhow?
Elias Sabo: Yes. I think, Larry, the good news is there’s not a lot of opportunities to transact again. So I don’t think it creates a problem for us right now because the pipeline is just so weak on new M&A opportunities. We are upward — towards — as of 12/31, we were at the upper bounds of kind of — beyond the upper bound of where we want to be in terms of leverage. That is, as you know, can move up and down. And remember, we did sell Advanced Circuits. And so what’s not included in that number is the proceeds and the application of that $170 million towards the repayment of debt. And so we deleverage by virtue of that. And then we expect to create a significant amount of cash conversion, as Ryan alluded to in his section.
