{"id":53,"date":"2020-05-13T08:48:00","date_gmt":"2020-05-13T03:48:00","guid":{"rendered":"https:\/\/www.adcorporatefinance.com\/allison-dent\/?p=53"},"modified":"2020-07-05T21:08:40","modified_gmt":"2020-07-05T21:08:40","slug":"ma-amid-the-covid-19-pandemic-decreased-financing-and-leverage","status":"publish","type":"post","link":"https:\/\/www.adcorporatefinance.com\/allison-dent\/2020\/05\/13\/ma-amid-the-covid-19-pandemic-decreased-financing-and-leverage\/","title":{"rendered":"M&#038;A Amid the Covid-19 Pandemic &#8211; Decreased Financing and Leverage."},"content":{"rendered":"\n<p>Despite government efforts to facilitate liquidity, we should expect to see delays in funding for add-on or growth transactions. Those leveraging previously negotiated revolving or variable lines of credit should fare better however expect the debt markets to tighten significantly. Banks will require more detailed due diligence, stricter covenants with heavy collateral, additional costs and delays passing credit approval. Moreover, where there is third party, institutional or governmental approval on a deal required, expect further complications of this nature. Much like the MAE issue (see below) the minimum performance requirements imposed by lenders, such as pre-defined minimum EBITDA or Net Profit targets, can foreseeably constitute an opportunity to change deal terms or even walk away.Looking to buy or sell a business?<br><br>Feel free to reach Allison Dent at <a href=\"mailto:info@adcorporatefinance.com\" target=\"_blank\" rel=\"noreferrer noopener\">info@adcorporatefinance.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Despite government efforts to facilitate liquidity, we should expect to see delays in funding for add-on or growth transactions. Those leveraging previously negotiated revolving or variable lines of credit should fare better however expect the debt markets to tighten significantly. Banks will require more detailed due diligence, stricter covenants with heavy collateral, additional costs and &#8230; <a title=\"M&#038;A Amid the Covid-19 Pandemic &#8211; Decreased Financing and Leverage.\" class=\"read-more\" href=\"https:\/\/www.adcorporatefinance.com\/allison-dent\/2020\/05\/13\/ma-amid-the-covid-19-pandemic-decreased-financing-and-leverage\/\" aria-label=\"Read more about M&#038;A Amid the Covid-19 Pandemic &#8211; Decreased Financing and Leverage.\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":69,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[5,3],"class_list":["post-53","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ma-amid-the-covid-19-pandemic","tag-allison-dent","tag-ma","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.adcorporatefinance.com\/allison-dent\/wp-json\/wp\/v2\/posts\/53","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.adcorporatefinance.com\/allison-dent\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.adcorporatefinance.com\/allison-dent\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.adcorporatefinance.com\/allison-dent\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.adcorporatefinance.com\/allison-dent\/wp-json\/wp\/v2\/comments?post=53"}],"version-history":[{"count":1,"href":"https:\/\/www.adcorporatefinance.com\/allison-dent\/wp-json\/wp\/v2\/posts\/53\/revisions"}],"predecessor-version":[{"id":54,"href":"https:\/\/www.adcorporatefinance.com\/allison-dent\/wp-json\/wp\/v2\/posts\/53\/revisions\/54"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.adcorporatefinance.com\/allison-dent\/wp-json\/wp\/v2\/media\/69"}],"wp:attachment":[{"href":"https:\/\/www.adcorporatefinance.com\/allison-dent\/wp-json\/wp\/v2\/media?parent=53"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.adcorporatefinance.com\/allison-dent\/wp-json\/wp\/v2\/categories?post=53"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.adcorporatefinance.com\/allison-dent\/wp-json\/wp\/v2\/tags?post=53"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}