Latest / The Acquisition Talk with Fexingo: Mergers, Buyouts, and Business Sales for Operators
The M&A Financing Condition Trap That Cost a Seller 25 Million
In this episode of The Acquisition Talk, hosts Lucas and Luna dissect a six-figure M&A mistake: a seller who lost $25 million after a buyer invoked a loosely worded financing condition when interest rates rose. The seller had turned down a competing all-cash offer because the winning buyer promised a faster close. But the purchase agreement's financing condition allowed the buyer to walk without penalty when debt markets tightened—even though the buyer had ample equity to close. Lucas explains how the 'reasonable best efforts' language was too weak to force the buyer to use its…
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