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

Cooley M&A

Since that post, the Delaware Chancery Court has had the opportunity to consider some preliminary issues relating to certain of those jeopardized transactions involving private equity-backed buyers.

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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.

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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). Growth firms will issue equity to pay for acquisitions; value firms won’t.

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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

Amherst agreed to pay Front Yard $100 million in the form of a cash payment, equity investment and new loan facility. March 14, 2019). [3] Residential rental companies Front Yard Residential and Amherst Residential mutually agreed to terminate their planned $2.3 billion merger. 2] Vintage Rodeo Parent LLC et al. Rent-A-Center Inc. ,

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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. 13] Transaction volume in listed equities has doubled in the last five years and tripled in the last 17 years. [14] Family Finances from 2019 to 2022” (October 2023), Page 19, available at [link]. [5] Further, U.S.

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The Corporate Tax Burden: Facts and Fiction

Musings on Markets

For instance, the 2017 US tax reform act, in addition to lowering the corporate tax rate, also changed the way that foreign income to US companies was taxed and put limits on the tax deductibility of debt. In a more telling statistic, the dollar value of taxes paid increased between 2017 and 2019 by 1.4% and the cash tax rate by 2.75%.