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Financing LBOs under German law

The global economic downturn and the Neuer Markt crash has left investors in VC funds wary of where their money is being deployed. Venture deals are declining as exit opportunities dry up. The resulting shift in emphasis to the leveraged buy-out market has brought with it a need for clarification of its processes and legal structures, as examined by lawyers in Lovells' Germany office.

LBO financing is an area of confusion for many, particularly limited partners investing in funds that are sourcing deals in this arena. In simple terms the process involves both equity and debt financing, although the structure of an LBO is far more complex than this would suggest.

Copyright © 2002 Lovells

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Lovells is an international business law firm with offices in major financial and commercial centres across Europe, Asia and the United States. As a consequence of mergers with Boesebeck Droste, Ekelmans Den Hollander and Siméon & Associés, together with its existing network of international offices, Lovells is one of the largest law firms in Europe. For more information please visit www.lovells.com