Conditions Precedent Checklist (Acquisition Financing)

Summary

In addition to the usual conditions precedent to closing found in standard credit or subscription agreements, provisions particular to the acquisition are desirable. Examples of points to consider in developing acquisition-specific conditions precedent are set out below, but these will need to be tailored to the circumstances of the applicable acquisition, the Target and the market in which the Target carries on business. These examples presume that the buyer (not the Target) is the Borrower. In each case, close attention must be paid to the sequence of events (whether funding or the acquisition happens first) and the flow of funds at closing, and the expectations of each party to the transaction in this regard should be discussed early in the transaction.