Partner Jennifer Wisinski authored an article in Reuters discussing how commonly used financing provisions in the merger agreement can address the risk of a financing failure during the period between the signing and closing of a merger.
Buyers routinely finance some or all of the costs to acquire a target company with committed financing. In these mergers, it is common for buyers to execute binding commitment letters with debt financing parties and, in the case of private equity sponsors, equity financing parties in connection with the execution of the merger agreement. The merger agreement typically also includes representations, covenants, and other provisions relating to the commitment letters and the financing.
To read the full article in Reuters, click here.
