Getting the Deal Done: How Companies Are Making M&A Work in 2020
At any other point in time, Matt Cardello’s saga — buying back the lighting and electrical distribution company his father founded in 1947 from the Connecticut firm that bought it four years ago — would be just a routine deal.
But nothing’s ordinary with mergers and acquisitions in the era of Covid-19. From obtaining the financing as lenders were overwhelmed processing Paycheck Protection Program loans to setting up a team he couldn’t meet with in person, Cardello, who put the transaction in motion on April 1, couldn’t have picked a worse time.
[...]
THE BIG QUESTION
How big of a factor will credit availability be for midsize companies looking to acquire?
Three prominent Pittsburgh lawyers specializing in corporate and M&A work share their thoughts.
“There’s significant availability on outstanding (credit) facilities for strong companies who are looking to strategically grow. They’re becoming more comfortable that there are opportunities available to them, and, if they find strong businesses in their market who aren’t adversely affected, those deals are getting done. Someone who may be potentially struggling but looking to make a complementary acquisition or get into a new market, those deals have slowed down and will have difficulty getting financing. Most of the people I represent that are selling their business are dealing with larger, established organizations that have the balance sheet to fund it.”
James Barnes, Pittsburgh administrative partner, Blank Rome LLP
To read the full article, please click here.
“Getting the Deal Done: How Companies Are Making M&A Work in 2020,” by Patty Tascarella was published in Pittsburgh Business Times on October 8, 2020.