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Matthew Hoberman is a member of the Business and Finance Department and Commercial Finance and Lending Practice Group.  He represents lenders with a particular emphasis on financing, development, construction, asset-based lending and middle markets. Matthew’s practice also includes public and private corporate finance, tribal finance and development and business law. His clients include foreign and domestic corporate, institutional and public owners, borrowers and lenders and public/private joint ventures and trade contractors.

The use of unitranche financing creates opportunities for lenders and value for borrowers.  There are some risks that lenders must understand in these structures.

With the volume and competition of middle market financings growing, many loan officers and lenders are asking, “What can we do better in order to get more business?”

In an acquisition financing scenario, unitranche may be a good path for you and your borrower.  Continue Reading Unitranche Financing – is it for you?

You just got your committee approvals for a new relation.  It is a borrower you have been after for some time.  Approvals are fairly standard and call for a secured credit facility with a priority all business asset lien.

The borrower is moving nearly all of its accounts to your bank for cash management too.  But the borrower claims he needs to keep one account at a mutual since he is holding his breath that there will be demutualization and he will hit it big with stock redemption.  You do not have the heart to crush his retirement dreams so you let him keep that other account.

How can you comply with your approvals and get a perfected security interest on that deposit account?

Continue Reading Deposit Account Control Agreements. Who Needs Em?

If I got paid a dollar for every time a client asks me “What is this property worth?” then I wouldn’t be writing this blog – I’d be fishing or playing golf.

As I tell my clients the market value of real property is what a knowledgeable, willing and able buyer would pay to an unpressured seller who is in the market to sell.

How does that apply to leases?

The Financial Accounting Standards Board on February 25, 2016 recently announced that the value of publicly traded companies must now include the value (as an asset and a liability) of its leases.  You may be thinking, “Why do I care?”

Currently, most companies do not report leases on their balance sheets.  Some argue this makes valuing a company that has extensive locations more difficult.

Supermarkets, drugstores, retailers, banks, hotels, restaurants and chains that have numerous locations will soon have larger balance sheets.  But will they accurately reflect the value of the company?

The Financial Accounting Standards Board thinks the balance sheet reporting of leases will result in a more accurate company value.  I am unconvinced.

Continue Reading How Much Is A Lease Worth?