Eversheds International
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Banking and Finance
Acquisition/ leveraged finance
Today’s challenges
Financing acquisitions is a big challenge. Over the last few years we have seen an extremely liquid debt finance market helping to facilitate deal doing both for financial sponsors and trade buyers. Structures have increased in complexity and timetables have contracted as funders have attempted to gain an edge over the competition. Auction processes have become standard on private company acquisitions and public bids have more often than not become competitive.
However, the credit squeeze has seen a dramatic change in the market bringing challenges for those attempting to make and finance acquisitions. Confidence has dropped and this has impacted on all aspects of funding an acquisition. This has had less of an impact at the lower end of the market where activity has remained relatively buoyant but higher up the market achieving an underwritten debt financing has become extremely difficult.
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