What is stapling in finance?
In the context of funding the acquisition of a company, stapled financing refers to a financing package arranged by the seller and its financial advisers which is offered to potential purchasers, usually as part of an auction process.
What is staple investment?
It consists of two or more securities that are contractually bound to form a single salable unit; they cannot be bought or sold separately. Stapled securities have especially been used in Australia; stapling is relatively uncommon in the rest of the world.
What is a staple bank?
Stapled financing is arranged by the investment bank that is advising the seller in an acquisition and includes a commitment letter (signed by the arranger but generally not the bidder) and a term sheet containing the principal terms of the financing. …
What is a staple commitment?
The term “staple” is derived from the fact that the commitment letter. It outlines the terms and conditions of the loan and the nature of the prospective loan. It serves as the agreement that initiates an official loan borrowing process.
How is staple finance different from wealth finance?
As we will describe for Inka state finance, staple finance is often used to support local administrative activities, and wealth finance is used to support more centralized state func- tions requiring long-distance movement of goods.
What is staple finance Archaeology?
Chiefdoms, Archaeology of Staple finance involves the systematic levying of tribute payments (in the form of staple goods and/or labor) from subjugated commoners, with the revenue used to finance directly the power-enhancing activities of the chief, such as monument building, warfare, trade, and ceremonial feasting.
Who prepares the stapled financing package?
Staple financing is arranged by the investment bank advising the selling company and includes all details of the lending package, including the principal, fees, and loan covenants.
What are financing trees?
In connection with staple financing provided by an investment bank to multiple bidders for the acquisition of a target company, business jargon for the various teams of investment bankers and their legal counsel working with each of the bidders.
What is a tree M&A?
Related Content. In connection with staple financing provided by an investment bank to multiple bidders for the acquisition of a target company, business jargon for the various teams of investment bankers and their legal counsel working with each of the bidders.
What are examples of surplus?
A surplus is when you have more of something than you need or plan to use. For example, when you cook a meal, if you have food remaining after everyone has eaten, you have a surplus of food. You can choose to throw the food out, stockpile it, or try to find someone else, like a neighbor, who wants to eat the food.
What is meant by surplus production?
Key Takeaways. Producer surplus is the total amount that a producer benefits from producing and selling a quantity of a good at the market price. The total revenue that a producer receives from selling their goods minus the total cost of production equals the producer surplus.
What is stapled capital?
At Staple Street Capital we help companies navigate change and capitalize on new opportunities to build stronger, more valuable businesses. Learn More.