Deal financing's impact on M&A in 2024 and beyond

Mergermarket’s Head of Auctions Rachel Lewis speaks with Debtwire’s Head of Private Capital Josh O’Neill about how the deal financing environment for private-equity buyouts is evolving as we approach the end of 2024.

As we head into the final quarter of the year, European buyouts are on par with the total disclosed value seen across the whole of last year - standing at EUR 133bn. The total number of deals is, however, still down at 946 versus 1,234.

Direct lenders have always had a vital role to play in financing leveraged buy-outs but their approach to auctions, to lending and to sponsors has changed in a higher interest rate and high inflationary environment.

Against this backdrop, O’Neill and Lewis discuss from both of their sides of the table - equity and debt - how the changing financing environment will impact the pipeline for the rest of the year and heading into 2025.

• Introduction - 0:25
• Pipeline from the lenders’ perspective - 2:35
• Protecting downside risk - 7:57
• Lending relationships with sponsors and auctions - 12:00
• Opportunities in lapsed deals - 19:59
• Debt-for-equity swaps - 22:45

Theme music: ©2012 Kick Up The Fire