Dorsey partner and Financial Services chair Joe Genereux commented in The Deal on the impact of tightening credit standards on the middle capital market (defined as transactions involving $750 million or less). Traditionally, the middle market has experienced the greatest shortfall during a credit shortage.
Genereux said several of his deals have headed in different directions. In one instance, a financial sponsor was able to rush through an acquisition of a corporate unit. Another deal, meanwhile, has stalled and is unlikely to push through after lenders balked at the debt-to-cash-flow multiple, saying the numbers were "no longer salable."
"Reappraisal" was published by The Deal, September 28, 2007.