BBG: Buyout giant CVC seeking more than €1 billion in Amsterdam IPO
BLOOMBERG reports: – Private equity firm may target up to €15 billion valuation – CVC has been ...
PITCHBOOK writes:
As private equity deal financing gets harder, sellers are granting favorable deal terms to buyers, such as deferred or performance-based payment, in order to close transactions.
Dealmakers say these structures also help bridge a growing valuation gap created by growing economic uncertainty and a tighter debt market.
“People find ways to get the transactions done,” said Markus Bolsinger, co-head of law firm Dechert‘s PE practice.
One solution has been to include one or multiple provisions known as earnouts that allow buyers to defer a portion of the purchase price and make the remaining payments only when the purchased company meets certain milestones, such as reaching an earnings target, getting a regulatory approval or accomplishing a strategic sale…
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Also of interest: “Pressure continues to mount on VC“.
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