Tag Archives | due diligence


The CIM…sales document or due diligence?

In larger middle market transactions we typically see senior and junior debt facilities with multiple lenders. Given tight timeframes in most LBO transactions, a delicate balance is struck between how much reliance can be placed on the confidential information memorandum (the “CIM”, also known as a bank book, etc.) and how much will be invested […]

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Baby in Boat

Baby on board? Risks of inexperience in LBO lending

During my too-brief sailboat racing career in Australia, it was often necessary to cut closely between islands and shoals during long-distance events. Invariably, these games of roulette came at night and in the midst of a blow. There is little that focuses you more than perilously close waves crashing on jagged rocks as you hurtle through […]

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Warning: Does that Base Case reflect reality? Or Newt and Biff’s Excellent Adventures

Years ago, one of my dearest mentors drummed the following advice into my cranium: One of the most obvious marks of inexperience and sloth is using, verbatim, sell-side information that is spoon-fed to an investor group. This is made more egregious as it obviously comes from parties benefiting from uncritical acceptance of the “data”. Not […]

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High barriers…to understanding

In what has to be the second most often used throw-away line behind “[insert name] is a leading [insert industry sector] company“, is the too-frequent, inadequately supported, drive-by industry analysis summed up by “high barriers to entry.” This becomes a nails-on-chalkboard experience when so often misused by non- or under-initiated underwriters, lenders, and pundits. Let’s take a step […]

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Giving diligence its due

“Diligence is the mother of good fortune.” – Miguel de Cervantes   “Ignorance never settles a question.” – Benjamin Disraeli Based on comments that I received on my May 29th post, I think further light could be shed on my bias toward an elevation of skills as one moves into the leveraged lending arena. Not […]

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