Financing M&A

No matter how M&A financing is structured, in today’s climate, the rules that lenders are applying have tightened up. According to Weil, lenders are factoring more uncertainty and risk into their pricing. This has led to lenders focusing more attention on a company’s current performance and the outlook for the next year. “Historically lenders have given a lot of weight to a company’s trailing 12-month performance, but that metric, while still examined, is less critical than a company’s current performance and outlook,” observes Weil. “Lenders today are also closely examining the financial health and outlook of a company’s main customers and their respective industries.”