Businesses of all types and sizes throughout the United States, Mexico and beyond bring their disputes to Gardere's litigation team and receive practical, responsive, boutique-style attention in return. Our clients have access to the firepower and value of a well-known and highly-regarded Firm's capabilities and interdisciplinary strengths.
Gardere has a national and international energy practice formed around our Energy Industry Team, which is a multidisciplinary group of approximately 60 attorneys with diverse backgrounds, experience and skills specific to the energy industry. Our team includes attorneys who have served as in-house counsel for major energy companies, providing a depth of insight into our clients' needs, issues and concerns. We understand and regularly practice in virtually every sector of the energy, and we represent a wide variety of industry participants from multinational corporations to individuals.
From our offices in the United States and Mexico, our International Practice helps clients operate in today’s global economy. We have more than 30 professionals operating as a boutique within an Am Law 200 law firm and are able to provide focused service with the resources of a large firm. We understand that clients who are engaged in the global marketplace need lawyers who can operate seamlessly across multiple jurisdictions. Our international experts are multi-lingual, are culturally fluent and intimately familiar with various legal systems across the world, especially those in Latin America. Whether you need help with commercial transactions, regulatory matters, customs and import regulations, immigration matters, M&A and joint ventures, international disputes, or international tax planning, Gardere’s international team is here to assist you.
We represent domestic and foreign private funds in all aspects of fund formation, fund operations, platform and add-on acquisitions, and portfolio company operations. Our team has a reputation for being the go-to-lawyers for private equity funds, hedge funds, venture capital funds and family offices. We are known for our vast deal experience, the efficient way we staff and manage our work, and the way we maintain our relationships. We get deals done with sophisticated, strategic, and practical advice tailored to the needs of our clients.
*Not admitted to practice law.
Private Equity firms are being impacted by the U.S. regulatory restrictions on highly leveraged buyout transactions. Recall that the U.S. regulators (the Federal Reserve, the FDIC, and the Office of the Comptroller of the Currency) first issued guidance in 2013 to try and make regulated lenders lessen their exposure to excessively leveraged M&A transactions. One part of the guidance forces regulated banks to strongly evaluate lending risks on, and avoid, deals where the Debt/EBITDA ratio would be greater than six (6). As a result, on several brand-name leveraged buyouts, regulated lenders declined to participate in the lucrative debt financing. Banks are up in arms because the regulatory guidance is unclear (and banks feel that certain regulatory organizations are more restrictive than others) and a number of regulated lenders are trying to be approved for returning value to shareholders so don’t want to run afoul of the unclear guidance. PE firms are upset that regulated lenders that often have long-term histories and valuable two-way relationships with the PE firms don’t want to participate in a proposed lending arrangement.
PE firms have reacted by doing a number of things. PE firms are reaching out to a greater number of regulated banks when pitching debt financing. PE firms are also turning to unregulated lenders for debt financing. PE firms are also working directly with debt investors. All of these strategies allow PE firms to maintain relationships with their regulated lenders while expanding the universe of potential M&A lenders (and hopefully lowering the costs of debt financing on their M&A transactions).
Another way to get around the Debt/EBITDA restriction is to recalculate the EBITDA of the target company by making various adjustments. Financial benefits to be derived from the buyout can be factored in to reduce projected expenses and thereby increase projected EBITDA. Target companies are having their financials scrubbed to see if any adjustments can be made to enhance EBITDA.
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