Such conflicts of interest have historically been a source of criticism in the media, and some commentators have asserted that these arrangements are not favorable for the target companies. Because the advising bank stands to collect M&A advisory fees from the seller or target as well as financing fees from the buyer, potential conflicts of interest arise.

Stapled finance transactions are not, however, without controversy and risk. Because the need for potential purchasers to establish their own financing is eliminated, such transactions can permit an expedited bidding process and are generally expected to attract more potential purchasers. The terms of the proposed financing are already established and signal the bank’s views as to the quality of the acquisition and how much leverage the target can support. In stapled financing, an investment bank that is advising a seller in an acquisition also offers financing to the would-be purchasers. The media has recently reported that stapled finance transactions have played a role in several recent company auctions and, whereas there was previously little interest in the product, interest appears to be increasing. That, however, appears to be changing, as stapled financing appears poised for a return. Though once popular, these transactions (which received their name because the details of a proposed financing are “stapled” to the back of sell-side acquisition materials) became less common after 2006, and virtually ceased to exist in the wake of the credit crunch. Thomson Financial League Tables - Thomson Financial s standard league tables are rankings of Investment Banks in terms of the dollar volume of deals they work on.The reported demise of stapled financing may have been premature. Rollover provisions apply to some disposals, one of the most… … Wikipedia The most significant exemption is the family home. As of 2005, Eustace Mullins is a member of the Southeast Bureau editorial staff of far right… … WikipediaĬapital gains tax in Australia - Capital Gains Tax (CGT) in Australia applies to the capital gain made on disposal of any asset, except for specific exemptions. Trees - USA In connection with stapled financing provided by an investment bank to multiple bidders for the acquisition of a target company, business jargon for the various teams of investment bankers and their legal counsel working with each of the… … Law dictionaryĮustace Mullins - (born 1923) is an American political writer, author, biographer, and the last surviving protege of the 20th century intellectual and writer, Ezra Pound. Staple financing is arranged by the investment bank advising the selling company and includes all details of the lending package, including the principal, fees and… … Investment dictionary Staple Financing - A pre arranged financing package offered to potential bidders in an acquisition. eine Finanzierungszusage genannt, welche im Rahmen von Firmenverkäufen durch Banken im Auftrag des Verkäufers… … Deutsch Wikipedia Staple Financing - Der Begriff Staple Financing (auch: Stapled Finance, staple financing package) wird im Investmentbanking ein Finanzierungspaket bzw. Stapled financing is arranged by the investment bank that is advising the seller in an… … Law dictionary

Business jargon for a pre arranged financing package offered to potential bidders in an acquisition. Stapled papers - USA stapled financing, Also known as stapled papers.