No More Modeling, Please!

When the Home Depot Supply buyout was reworked earlier this month, numerous press reports discussed how the resolution would serve as a model for other hung transactions. Then I read the same thing earlier this week, when KKR made some minor concessions on the leverage terms for its pending buyout of First Data. So does that mean we have two models for other hung deals to choose from?

No. Neither is a model.

Not because the resolutions were faulty, but because there is no “one size fits all” for leveraged buyouts. Each deal is unique – in terms of combined structure, seller, buyer and banker. Seems obvious, but nonetheless needs to be said.

This is a very tough market right now, and there is no way to color by number. People working on these deals recognize that. It’s folks on my side of the market that seem not to…