The Return of Stapled Financing?

Originally published April 21, 2010

Keywords: stapled financing, sell-side acquisition materials, stapled finance transactions

The reported demise of stapled financing may have been premature. Though once popular, these transactions (which received their name because the details of a proposed financing are "stapled" to the back of sell-side acquisition materials) became less common after 2006, and virtually ceased to exist in the wake of the credit crunch. That, however, appears to be changing, as stapled financing appears poised for a return.  

The media has recently reported that stapled finance transactions have played a role in several recent company auctions and, whereas there was previously little interest in the product, interest appears to be increasing.