The following Banking & Finance guidance note provides comprehensive and up to date legal information covering:
This Practice Note is intended as an introductory guide to acquisition finance for those with no, or limited knowledge of the area. It explains:
what acquisition finance is
parties and documents on an acquisition finance transaction
how acquisition finance transactions are typically structured
the main stages of an acquisition finance transaction, and
the key areas of relevant law
It also contains links to relevant resources within Lexis®PSL.
There is a large amount of terminology and jargon on acquisition finance transactions. For an explanation of commonly used terms, see Practice Note: Glossary of acquisition finance terms and jargon. It may be helpful to read this Practice Note in conjunction with the glossary.
The term 'acquisition finance transaction' is usually used to describe an acquisition of a business substantially funded by debt which has been specially raised for the purpose of making the acquisition. The term 'acquisition finance' describes the debt finance raised from banks and other institutions that invest in acquisition finance transactions.
Acquisition finance is primarily associated with leveraged buy-outs (known as LBOs), ie private-equity sponsored acquisitions of businesses where the acquisition is funded by a mixture of debt and equity invested by the sponsor. Corporate purchasers will often raise equity or use existing
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