Inexperience in LBO Lending: A Dangerous Game

June 28, 2013 09:49 by Clayton Reeves in Financing, M&A  //  Tags:   //   Comments (0)

Mark Gaffin at the Gaffin Group offers some solid advice on the dangers of inexperience in LBO lending.  With the current deal drought, many lenders are trying to diversify their offerings and entering into a leveraged buyout market that can be dangerous for the inexperienced.  In the article he cleverly compares LBO lending to sailboat racing; the key similarity between these two items is that with experience comes a certain confidence and ability to manage the unexpected.

Mark emphasizes the fact that executing deals takes a rare combination of experience, knowledge and patience from both lenders and other deal participants.  This is something not all firms, lenders or banks are equipped with.  Click below to read the rest of this article.

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