PB: PE sellers sweeten deals

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 ...