How Should US Sellers and Buyers of Businesses View European “Certain Funds”?

April 05, 2018

As M&A practitioners who do deals in Europe as well as in the U.S. know, the certainty of banking commitments is stronger as a rule in Europe than in the U.S. So much so that, given the choice, it can be a factor in the decision whether to do the financing in Europe or in the U.S. If the seller is in Europe, European “certain funds” will usually be stipulated as a requirement in any sales process. Even if the seller is in the U.S., a bidder has been known to try to distinguish his bid by demonstrating a European level of banking certainty.

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