M&A Activity
M&A activity in the U.S. totaled $1.8 trillion in 2017. That number is expected to be higher this year due to recent tax legislation and repatriation of foreign earnings.
To complete an M&A transaction, you must obtain the lender’s approval for most debt structures. Where there is CMBS debt in place, this approval process can delay the entire transaction, as it can take more than 6 months to obtain the necessary approvals. There are often 3 -4 companies involved in the approval process for each loan in addition to the rating agencies. Often these approval parties are different per loan!
There are often 3 -4 companies involved in the approval process for each loan in addition to the rating agencies.
1st Service Solutions recently assisted an M&A firm on a transaction that involved over 30 CMBS loans with 3 master servicer, 4 different special servicers and various rating agencies. We obtained all the approvals in just under 60 days. We were able to do that because (a) we have relationships at the CMBS servicing shops at the very senior levels, and (b) this is what we do full time!
I am a big believer in doing what you do best and outsource the rest! Let us serve as your CMBS M&A experts!