Kalish Mullen: "When it comes to LBO financing, managers must leave nothing to chance", Le Nouvel Economiste

Partner Kalish Mullen spoke with Le Nouvel Economiste about the LBO financing market and what management teams should consider when negotiating financing amid higher borrowing costs and economic uncertainty.

Kalish said strong market liquidity is giving quality borrowers greater scope to negotiate financing terms, but management teams should pay close attention to financial covenants and ensure they retain sufficient flexibility around EBITDA calculations.

He also emphasized the importance of management teams actively reviewing financing terms between signing and closing, including provisions affecting future acquisitions and certainty of funds.

“In times of high economic uncertainty, it is better not to leave anything to chance,” Kalish said.

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