<p>We interviewed Kelly Lamirand, Senior Vice President at KeyBank to discuss what business owners should expect from Senior Lender M&amp;A due diligence. Among other things, Kelly discusses:<br/><br/></p><ul><li>What information do senior lenders require when performing bank due diligence in an M&amp;A transaction?</li><li>Why do banks conduct due diligence?</li><li>Common lending terms including revolver availability, cashflow recapture, and airball</li><li>Discussion of the &quot;5 C&apos;s of Credit,&quot; Character, Capacity, Condition, Collateral, Capital</li><li> What debt levels are senior lenders comfortable with from a total debt perspective and a senior debt perspective?</li><li>What factors into the interest rate senior lenders charge? Does a bank&apos;s relationship with the private equity firm factor into pricing?</li><li>What are debt covenants and what purpose do they serve?</li><li>How do banks view growth capital expenditures vs. maintenance capital expenditures?</li></ul>

What To Expect From Legal Due Diligence

Selling a company is something most business owners will only encounter once in their lifetime. Over the years, we've met with thousands of business owners and noticed that the same questions and concerns come up repeatedly. To that end, we've launched our Well Capitalized Interview Series to help demystify the process of selling one's business. We interview private equity investors, business owners who have partnered with private equity groups, and professionals well-versed in legal, tax, accounting, environmental and other aspects of business transactions.