Latest / The Acquisition Talk with Fexingo: Mergers, Buyouts, and Business Sales for Operators
The M&A Covenant Trap That Cost a Buyer $25 Million
In this episode of The Acquisition Talk, Lucas and Luna dive into one of the most overlooked deal-killers in M&A: the negative covenant trap. They walk through the real story of a private equity firm that bought a specialty chemical company for $150 million, only to discover that a seemingly standard 'no additional debt' covenant in the target's existing credit agreement blocked the acquisition financing itself. The PE firm had to pay $25 million to waive the covenant—money that went straight to the target's existing lender. Lucas explains how this happens, why founders…
The skinny
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