Old Habits Re-emerge

Kellerhals, Richard
July 2010
Mergers & Acquisitions Report;7/26/2010, Vol. 23 Issue 30, p23
The article looks at the state of the stock market as of July 2010. A U.S. head of loan sales and origination for a large international bank explained that the successful underwriting of leveraged buyouts (LBOs) makes equity checks closer to 30%. Figures showed that leverage multiples increased consecutively during the first two quarters and that the number of deals with debt-to-Ebitda ratios of 5 times or higher has grown since 2009. There is a forecast that smaller transactions will have equity contributions of 40% or more.


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