Reverse Due Diligence — A New Trend In Financial M&A
Law360, New York ( September 19, 2014, 2:25 PM EDT) -- As discussed in our prior article, "A Primer on Structuring Specialty Finance M&A Deals," Law360, Sept. 9, 2014, regulatory uncertainty has both driven deal flow for specialty finance businesses and portfolios and made consummation of those transactions more challenging. This regulatory uncertainty affects all consumer finance businesses, not just the mortgage industry, and these new concerns are starting to be reflected in the merger and acquisition transaction process and the negotiation of acquisition agreements. Some of the tactics of the immediate post-credit crisis period — selling assets and businesses quickly for a discounted price with no strings attached — are now less likely to pass muster based upon regulatory expectations....
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