What To Expect From Banking M&A Due Diligence 

What should business owners expect from M&A banking due diligence? We interviewed Kelly Lamirand from KeyBank to discuss.
1:28 - How does KeyBank define the middle market?
2:00 - What information do senior lenders require when performing bank due diligence in an M&A transaction?
3:49 - Why do banks conduct due diligence?
4:31 - Common lending terms including revolver availability, cashflow recapture, and airball
8:50 - Discussion of the "5 C's of Credit," Character, Capacity, Condition, Collateral, Capital
15:41 - What debt levels are senior lenders comfortable with from a total debt perspective and a senior debt perspective?
17:30 - What factors into the interest rate senior lenders charge? Does a bank's relationship with the private equity firm factor into pricing?
18:34 - What are debt covenants and what purpose do they serve?
21:00 - How do banks view growth capital expenditures vs. maintenance capital expenditures?
Interested in learning more about what to expect when selling a business? We've created a library of content designed to answer some of the most common questions that come up when contemplating an M&A transaction: www.mcmcapital...