Skip to content
  • 214-244-7227
  • robb@cfoforrent.com
  • Home
  • Blog
  • Contact Us
cfo-logo-hover
  • Robb
  • November 21, 2023
  • 0 Comments

multicolor chart dashboard
CFO Magazine reported recently that federal banking regulators last month published revised and final guidance for financial institutions that originate leveraged loans, as part of an effort to rein in aggressive underwriting of the instruments that underpin many private equity buyouts, many of which turned out to be more risky than originally thought.

One of the areas the new regs focus on is the leverage of the borrower, i.e., the company being acquired. Debt to EBITDA ratios greater than 4 to 1 – not unusual in such transactions – will be considered highly leveraged and subject to additional conditions for regulatory purposes. What does that mean for the company being acquired in such a leveraged deal? Greater scrutiny, higher balance sheet standards, and likely higher transaction costs.

So if you’re considering such a transaction as part of your exit strategy, you should look for ways to beef up your balance sheet ahead of time. One good way is to earn higher profits. That’s where we come in. Your CFO for Rent®

  • acquisition balance sheet banking buyout CFO for Rent exit strategy finance Gene Siciliano LBO lending loans M&A regulators
  • Share This Post

Categories

  • Board of Directors (60)
  • Controller for Rent™ (153)
  • Entrepreneurs & Business Owners (314)
  • Entrepreneurs and Business Owners (2)
  • Exit Strategies (88)
  • Finance Mentoring (289)
  • Management (44)
  • Non-Profits (156)
  • Real Estate (11)

Popular Tags

  • accounting
  • balance sheet
  • banks
  • board of directors
  • book
  • budgets
  • cash
  • cash flow
  • cash management
  • CFO
  • CFO for Rent
  • economy
  • education
  • employment
  • exit
  • finance
  • Finance for Nonfinancial Managers
  • financial management
  • financial reporting
  • fund raising
  • Gene Siciliano
  • governance
  • growth
  • hiring
  • investing
  • lending
  • loans
  • M&A
  • management
  • money
  • Non-Profits: This Blog's for You
  • nonprofit
  • not-for-profit
  • part-time CFO
  • planning
  • profit improvement
  • real estate
  • retirement planning
  • risk management
  • sell the business
  • small business
  • strategy
  • taxes
  • training
  • Your CFO for Rent

Please feel free to contact us at 214-244-7227 or robb@cfoforrent.com
for an exploratory conversation with no obligation.

We will be glad to hear from you.

Get In Touch

© 2024 CFO For Rent - Western Management Associates. All rights reserved. Website by Avodah Web Solutions.