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Recommended: Action stations for M&A

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Action stations for M&A

In days gone by, private equity firms saw asset-based lending as a tool to free-up cash flow for portfolio companies. Peadar O’Reilly, Venture Structure Finance’s regional director for the North West, sees evidence of that view changing.

‘Up to the front end of 2007, firms tended to prefer to use senior debt to finance and structure a deal, given the levels of leverage available. Now we are seeing an increased appetite among PE firms to use ABL at the front end of the transaction.’

There is a paradigm shift in M&A at the moment as attitudes evolve and compromises are made between dealmakers in order to get transactions completed. The result appears to be to everyone’s benefit as the ever present “deal pipeline” talked about by advisers is becoming jammed with deals, finally.

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