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Navigating the Risk-Reward Equation in Mergers and Acquisitions: Unveiling the Dynamics of Financing Models

Sun Acquisitions

On the flip side, if the merger generates synergies and increased profitability, debt financing can yield substantial rewards, as debt is often lower than equity. Equity Financing: Dilution vs. Stability Equity financing involves issuing new shares to raise capital for the M&A transaction.

Finance 59
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Skadden Discusses the Impact of Banking System Turmoil

Reynolds Holding

Some large private equity firms have said publicly that they are interested in providing capital to regional banks by buying loan assets. Current bank regulations generally treat sovereign debt as very low risk, making it eligible for use in liquidity buffers and as high quality collateral for derivatives and other trades.

Banking 40
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Sullivan & Cromwell Discusses the Implications for Financial Institutions of Proposed SEC Climate Disclosure Rules

Reynolds Holding

Of most importance for financial institutions, the identified categories also include downstream activities such as “investments” (Category 15 of the GHG Protocol’s Scope 3 emissions categories), which would capture financed emissions ( i.e. , emissions from companies to which the financial institution provides debt or equity financing).

Finance 45