Home | Business News | Browse by Publication | M | Mergers & Acquisitions: The Dealmaker's Journal

Credit Unrest: An End in Sight? There is light in the tunnel for the lower end of the market primarily coming from asset-based and mezzanine lenders.

Article Excerpt
Byline: Ron Kerdasha

The financial crisis and the myriad of issues facing banks have had a dramatic impact on the availability of credit. At the same time, the slowing of the economy has resulted in deteriorating financial performance of businesses in many industry segments, which has made credit even tighter. One outcome of these events has been a decline in mergers and acquisition activity, with company performance in question, and a lending community not willing to put money to work facilitating acquisitions at anywhere near the levels of the past five years. The demand for loans has also been increasingly tempered by companies being somewhat cautious in opening up discussions on a new or amended credit facility for fear of what they might get in return, even if the reason for the discussion is a positive one.

Now the good news - financing is still available out there. Despite the continuing impact of the credit crunch, asset-based and mezzanine lenders are actively seeking to provide debt in the middle and lower end of the market, albeit with a more...

View this article FREE - Now for a Limited Time, try Goliath Business News
Free for 3 Days!