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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.

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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

We propose a theory of corporate finance based on the idea that firm managers maximize EPS: the difference between net operating profits and interest expense divided by total shares outstanding. To see this distinction, consider the choice of capital structure: whether to use equity financing or a combination of equity and debt.

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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. The Division of Corporation Finance oversees the disclosures of public companies so that investors can make informed investment decisions. Closing Finance knows no geographical boundaries. 3] About 58 percent of 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

The return of the financing out? Once upon a time, it wasn’t unusual for buyers (particularly financial sponsors) to push for financing conditions that allowed them to back out of an announced deal if they used sufficient efforts to seek financing but came up short. March 14, 2019). [3] 2] Vintage Rodeo Parent LLC et al.

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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]