Bass, Berry & Sims attorney Scott Reid authored a guest column for the Nashville Business Journal outlining the steps that private equity firms and management teams can take to prepare for an acquisition or financing during periods of financial uncertainty. Careful preparation can help increase the likelihood of executing deals in the future. Listed below are the steps that Scott recommends sponsors and management teams should undertake in advance to position themselves for executing future deals quickly:

  1. Determine the scope of actions permitted under existing credit facilities and review the lender voting thresholds for related lender consents.
  2. Engage a team of advisers before any transaction terms are proposed.
  3. Be vigilant with compliance matters in credit facilities and material contracts.

While not an exhaustive list, these three steps “will position a team to act quickly when opportunities for acquisitions and financings arise.”

The full article, “Take Steps During Periods of Uncertainty to Prepare for Future Acquisition and Financing Opportunities,” was published by the Nashville Business Journal on May 18 and is available online (subscription required).