Latest / The Acquisition Talk with Fexingo: Mergers, Buyouts, and Business Sales for Operators
The Interest Rate Adjustment Clause That Cost a Seller 30 Million
In this episode, Lucas and Luna dissect a specific M&A pitfall that cost a seller $30 million: the interest rate adjustment clause buried in a purchase agreement. They walk through the real-world case of a Midwest manufacturing firm sold in early 2025, where a seemingly standard provision—tied to a floating interest rate—turned against the seller when the Federal Reserve's rate path shifted unexpectedly. They explain how the clause worked, why both sides agreed to it, and how the seller's own advisors underestimated the risk. The conversation covers the mechanics of rate adjustment…
The skinny
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