PI 400 -- M&A Activity - Acquisitions Yield To Slow Economy

Buyers can generally borrow another one times EBITDA in mezzanine sub debt for a total of 31⁄2 times, leaving the balance of a deal, generally no more than one times EBITDA, to be financed by equity. Banks and mezzanine lenders, however, will only extend these levels of financing for superb companies with histories of solid earnings. But the buyers aren't even sniffing at high-performance companies.