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Pandemic-Related Deal Litigation Highlights Buyer Leverage in Transactions Requiring Debt Financing

Cooley M&A

The decisions from the court on those preliminary matters, as well as the arguments raised by legal counsel, offer some valuable lessons for sellers considering sale transactions that require debt financing, and may motivate sellers to re-evaluate certain provisions and remedies that have become customary in those transactions.

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Fed Rate Cut Fuels Acquisition Boom: Why Now Is the Time to Act

Scott Mashuda

This increased liquidity, coupled with easing interest rates, makes financing more accessible and affordable for lower middle market companies, which often rely heavily on debt financing. Shifting Investor Risk Appetite : A more accommodative Fed policy typically encourages investors to seek higher returns.

Finance 83
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Have Your Cake, and Closing Too: Invoking Prevention Doctrine, Delaware Chancery Court Grants Seller’s Request for Specific Performance in COVID-Related M&A Dispute

Cooley M&A

In reaching this order, the court applied the prevention doctrine, finding that the unavailability of buyer’s debt financing did not permit buyer to circumvent its obligation to close because buyer materially contributed to the debt financing being unavailable.

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Modeling Managers as EPS Maximizers

Reynolds Holding

For example, a firm engages in a debt-financed repurchase if the negative impact of the increased interest expense on EPS (through the denominator) is smaller than the positive impact associated with decreasing the number of shares (through the numerator). Review of Corporate Finance Studies 8(1), 174–206. Graham, J.,

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SEC Chair Speaks on Markets, Securities Laws, and the SEC

Reynolds Holding

debt capital markets facilitate 75 percent of debt financing of non-financial corporations. Family Finances from 2019 to 2022” (October 2023), Page 19, available at [link]. [5] Over half of American households, representing more than 115 million individual investors, own registered funds. [3] 4] Third, the U.S.

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Social Distancing From a (Supposed) Life Partner: Early Lessons From Deals Terminated and On the Rocks in the COVID-19 Era

Cooley M&A

After the 2007 – 2008 financial crisis, financing conditions quickly fell out of favor when a number of prominent deals fell through due to financing failures, and over the past decade pure financing outs have been exceedingly rare. March 14, 2019). [3] 2] Vintage Rodeo Parent LLC et al. Rent-A-Center Inc. , Contributors.

Finance 40
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SEC Chair Testifies Before Senate Subcommittee on Financial Services

Reynolds Holding

debt capital markets facilitate 75 percent of debt financing of non-financial corporations. We’ve seen the number of tips, complaints, and referrals we get at the SEC climb from about 16,700 in 2019 to more than 40,000 in 2023. Family Finances from 2019 to 2022” (October 2023), Page 19, available at [link]. [5]