M&A Activity -- Expect a Surge in Mergers

Closing and Funding

When due diligence is complete and when the attorneys have negotiated a mutually acceptable Purchase Agreement, the transaction is ready to close and fund. A delay can occur if the buyer has a financing contingency and has not yet obtained his lender's firm commitment. Large publicly traded strategic buyers rarely have a financing contingency, since ready cash or an existing credit line are adequate to finance the deal. Financing contingencies usually arise in deals with Financial Buyers. Closing and funding the deal usually occur on the same day.