Financial Covenants Part II: Maximum Leverage Ratio
April 2020 In Part I of this blog post series, we provided an overview of financial covenants in cash flow loans with a particular focus on the leverage ratio covenant and fixed charge ratio covenant. In this blog post, we will take a closer look at the maximum leverage ratio covenant and how it is negotiated in practice. […]
Rollover Equity – Seller Risks
In previous blog posts, we have explored the benefits of rollover equity when selling a business, particularly the potential opportunity of a “second bite at the apple.” For selling equity owners, however, the potential upside to be earned upon the second transaction involving the company or its acquirer is not without risk. Inherent in any […]
The Lifecycle of an Opportunity Zone Investment: Part 3
Part 3 – The Opportunity Zone Tax Benefits Explained If you’ve made it to Part 3 of this Series, then you already know that the economic upside of the opportunity zone program lies in the following three categories of tax benefits: (1) the deferral of tax on capital gains that are timely invested in qualifying […]