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….

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…

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…

Paycheck Protection Program (PPP) Loan Forgiveness FAQ The Paycheck Protection Program (“PPP”) is one of the most important provisions for small businesses in the new $2 trillion Coronavirus Aid, Relief and Economic Security Act (“CARES Act”). Critically, it provides a mechanism for loan forgiveness of up to the full amount of principal and interest where…

It’s All About the Leverage – Increasing Rollover Participant’s Equity Share The previous post in this rollover series provided an overview of the benefits of rollover equity when selling a business. In this post, we consider further the power of leverage in such a buyout whereby current owners can increase their equity stake in the…

Part 2 – What Do We Know, And What Is Yet To Come? In December 2019, the U.S. Treasury Department and Internal Revenue Service issued its final regulations governing the Opportunity Zone program. These 544 pages of regulations, including commentary and examples, sought to address both the initial lack of guidance in the prior proposed…

Unitranche Loans in the Middle Market In the first of this 2-part blog post series, we will review the unitranche loan market generally and discuss the key characteristics and advantages of unitranche loans with a focus on middle market private equity transactions. Part two of the series will focus on the agreement among lenders and…

SBA Loan Options Following Enactment of the Coronavirus Aid, Relief, and Economic Securities Act (“CARES Act”) On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief and Economic Security Act (“ CARES Act ”), a $2 trillion stimulus package which includes relief for small business owners affected by the novel coronavirus (COVID-19). The new…

Page 3 of 6 1 2 3 4 5 6

Contact Us - 203 973 5210

© 2020 Martin LLP. All rights reserved.
Website by Solutions for Growth