23 min
What Are Debt Covenants? M&A Banking Due Diligence Overview Well Capitalized
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- Entrepreneurship
We interviewed Kelly Lamirand, Senior Vice President at KeyBank to discuss what business owners should expect from Senior Lender M&A due diligence. Among other things, Kelly discusses:
What information do senior lenders require when performing bank due diligence in an M&A transaction?Why do banks conduct due diligence?Common lending terms including revolver availability, cashflow recapture, and airballDiscussion of the "5 C's of Credit," Character, Capacity, Condition, Collateral, Capital What debt levels are senior lenders comfortable with from a total debt perspective and a senior debt perspective?What factors into the interest rate senior lenders charge? Does a bank's relationship with the private equity firm factor into pricing?What are debt covenants and what purpose do they serve?How do banks view growth capital expenditures vs. maintenance capital expenditures?
We interviewed Kelly Lamirand, Senior Vice President at KeyBank to discuss what business owners should expect from Senior Lender M&A due diligence. Among other things, Kelly discusses:
What information do senior lenders require when performing bank due diligence in an M&A transaction?Why do banks conduct due diligence?Common lending terms including revolver availability, cashflow recapture, and airballDiscussion of the "5 C's of Credit," Character, Capacity, Condition, Collateral, Capital What debt levels are senior lenders comfortable with from a total debt perspective and a senior debt perspective?What factors into the interest rate senior lenders charge? Does a bank's relationship with the private equity firm factor into pricing?What are debt covenants and what purpose do they serve?How do banks view growth capital expenditures vs. maintenance capital expenditures?
23 min