Mercer & Hole’s Business blog - Due Diligence
Ever felt completing a whitewash procedure as a private company in respect of financial assistance w
Date: 8th May, 2007 | Author: Gary Farnes | Comments: 0
I have and I am pleased to say the new Companies Act will take away this requirement for private companies. However I do have concerns over complex deals where the protection of the creditors will be lost. How are they going to feel if the transaction leaves them with a shortfall in the amount they get back ? No doubt the lawyers will end up getting involved. At least an amended form of Section 151 of Companies Act 1985 still applies to public companies. ...
What profit measure should I use?
Date: 30th April, 2007 | Author: Gary Farnes | Comments: 0
Is it just me or are transactions becoming more and more leveraged? Lenders appear to be have a better appetite for lending compared to when I started in the profession. I think this is a positive change, as very few transactions I have been involved in have gone awry (it must be the excellent Due Diligence advice…..). However could it be that lenders are misinterpreting the profit calculations? The shift in profit measures from EBT (Earnings Before Tax), EBIT (Earnings Before Interest & Tax) and EBITDA (Earnings Before Interest, Tax, Depreciation & Amortisation) have meant that the basis for...
