Recent Developments in Acquisition Finance

April 05, 2018

Did you just commit to a financing without realizing it?

The question of when parties to a potential transaction actually become bound to each other is obviously an important one, and sometimes the answer can be surprising, or less than entirely clear. A recent Texas Court of Appeals decision demonstrates, in an acquisition context, that even a sophisticated party that has taken all the usual steps to avoid becoming bound prior to signing up definitive documentation may find itself inadvertently bound to a contract prior to such time. The case is a reminder to parties negotiating acquisitions and acquisition financings to practice a touch of extra prudence in the course of negotiation in order to avoid this inadvertent result.

Read "Recent Developments in Acquisition Finance."