Latest / The Acquisition Talk with Fexingo: Mergers, Buyouts, and Business Sales for Operators
The M&A Covenant Trap That Triggered a $75 Million Acceleration
In this special 100th episode of The Acquisition Talk, Lucas and Luna dissect a devastating but underappreciated M&A trap: the affirmative covenant that forces sellers to maintain 'ordinary course of business' between signing and closing. Using the real-world case of a Texas-based industrial distributor that lost $75 million when a routine inventory replenishment triggered an acceleration clause, the hosts explain the specific language that turned a standard business decision into a catastrophic buyer leverage point. They walk through the exact covenant wording, the judge's…
The skinny
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