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.