DLA Piper releases its European Acquisition Finance Debt Report for 2013
Bolstered by strong balance sheets and the availability of cheap finance, the market saw more deals completed last year compared with 2011. According to four out of five respondents to our fourth annual survey, there was sufficient liquidity to get mid-market deals financed, although fewer transactions values exceeded the £150m mark. Adverse conditions clearly continued to restrict the debt market from realising a stronger growth rate, with lenders determined to focus on the right deal.
2012 was defined by the eurozone crisis, increased regulatory constraints and a greater focus on risk. Since the start of the financial crisis, banks have been forced to shrink their balance sheets and rein in issuance, and now their long-held position as the most popular source of finance has become subject to challenge. With this trend set to continue in 2013, a growing percentage of borrowers are likely to explore alternative sources of funding, presenting non-bank lenders with an opportunity to gain a larger share of the debt market.
Many corporations and sponsors will continue to rely on bank loans for financing acquisitions, but our 2013 Report reveals the extent to which we may now be witnessing a more profound structural change in the acquisition finance market. As commercial banks continue to be challenged by the ongoing need to repair balance sheets and comply with new capital requirements, new non-bank players are stepping up to bridge the liquidity gap. The US market has of course had these characteristics for some years now…
If you are registered and logged in to the site, click on the link below to read the rest of the DLA Piper briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from DLA Piper
News from The Lawyer
Briefings from DLA Piper
A well-known British performing artist was granted permission to take his case to the Supreme Court, where he will appeal the Court of Appeal’s decision in OPO v MLA & STL.
The increased focus of national data protection authorities on the processing of personal data through mobile apps was again confirmed in an open letter from a group of data protection authorities.
Analysis from The Lawyer
Regulators are ramping up the pressure in the aftermath of recession, leaving firms to compete for compliance and restructuring work
Shearman & Sterling is making its presence felt in the City, squaring up to magic circle firms and looking to muscle in on key relationships. Private equity house Bridgepoint is one outfit that has had its head turned by the US firm.