Dubai 
ParisFinancing Risk and Funding Certainty
Financing arrangements are a key component of many transactions, particularly in leveraged acquisitions and private equity transactions.
Where financing is required, deal certainty is often closely linked to the availability and reliability of funding.
Parties may therefore wish to consider whether financing arrangements remain robust and whether any conditions attached to funding could impact transaction execution.
Key areas of focus include:
- lender approvals and internal credit processes
- conditions to drawdown and availability of funds
- potential changes in lending appetite or financing terms
- timing of funding relative to completion
- financing-related termination rights
In some cases, financing may be subject to conditions that are not fully aligned with the transaction documentation. This can create a risk that funding may not be available at the point of completion.
Early engagement with lenders can help identify potential issues and ensure that financing arrangements are aligned with transaction timelines and conditions precedent.
In addition, careful coordination between legal advisers and financing parties can help reduce execution risk and enhance overall deal certainty.
If you or your organisation would like to discuss any aspect of this guidance note further, please don’t hesitate to reach out to your usual CVML contact, or email:
Naji Khairallah, Partner, CVML (n.khairallah@cvml.ae)