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Shifting the Risk: An Evolving Approach to Financing Contingencies in LBO Acquisitions
March 31, 2006 Full PDF
An article written by partners Paul Ginsberg and Kelley Parker and associate O. Denny Kwon appeared in the March 2006 issue of The M&A Lawyer. The article, "Shifting the Risk: An Evolving Approach to Financing Contingencies in LBO Acquisitions," discusses the recent trend in private equity sponsored LBOs to shift the financing contingency risk from the sellers to the sponsors and to provide direct recourse against the sponsors in the event of a failed financing. The article also discusses considerations for sponsors, sellers and their advisors in evaluating this evolving approach.