Staple Financing

Staple financing is a pre-arranged financing package offered by a seller's advisor to potential buyers during an M&A transaction. This type of financing "staples" a financing package to the deal, making it easier for buyers to secure funding. It helps facilitate the transaction by providing a clear pathway for financing but may also raise questions about conflicts of interest between the buyer and seller.

Key Takeaways

  • Pre-arranged financing attached to an M&A deal.
  • Facilitates funding for potential buyers.
  • Helps smooth the transaction process.
  • May present conflicts of interest in negotiations.

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