Tapping New Markets to Unlock Deal Value

Tapping New Markets to Unlock Deal Value
May 31, 2024 2 mins

Tapping New Markets to Unlock Deal Value

Companies and financial sponsors are constantly seeking innovative and capital-efficient ways to facilitate M&A deals.

As economic volatility impacts decisions around mergers and acquisitions (M&A), companies and financial sponsors are constantly seeking innovative and capital-efficient ways to facilitate deals, whether through unlocking alternative forms of funding, accessing additional collateral or mitigating credit risk.

One emerging — and important — trend is the use of credit insurance and surety markets by financial sponsors to unlock deal value and enhance acquisition financing structures, as well support post-acquisition working capital and liquidity needs.

At the Aon Insights session on Optimising Capital Structures and Financing Terms in M&A, our guest experts, who have a diverse toolkit of strategies and techniques, talked about their first-hand experience in using insurance and surety solutions to facilitate M&A with greater confidence and security across a wide range of industry groups.

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As a private equity firm, it’s super-important to improve our shareholder value.

Katia Robard
Senior Vice President Portfolio Operations – KPS Capital Partners

During the session, Aon’s subject matter experts highlighted how the market has been adapting its offering to not only shorten the cash conversion cycle for individual assets and portfolios, but also to facilitate off-balance-sheet solutions for transaction related demands for collateral — especially in complex or high-value transactions where the potential for default or non-performance is greater.

We also focused on the credit insurance market and how it can continue to enhance its value and prominence in M&A dealmaking, especially in a constantly changing and uncertain geopolitical and economic environment.

Article by
  • Stuart Lawson
    Global Specialty Product Leader, Credit Solutions, Aon

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