Frequently, borrowers you finance are looking to expand their operations through asset or share purchase transactions involving other businesses. Often they will be looking to you to fund the acquisition. The business to be acquired is generally known as the target or the target corporation.

In this video, we discuss:

  • The target's pre-existing financing arrangements
  • Sale of purchased assets or shares
  • Payout letter and undertaking to discharge

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How we can help

If you have any specific questions about the points discussed or it's specific application, please reach out to our Banking & Finance Group or Richard Dusome.

About the series

Lending rarely involves one bank providing 100 per cent of the financing. In many situations, there are numerous third-party creditors involved in a given transition. With so many stakeholders in play, bankers might have no idea how to legally protect their interest. This series will delve into the "why" and "how" of preparing priority arrangements, all in a language bankers can understand.