us unemployment rate gains

The unemployment rate reached 4.4% as of August 2017. This is the lowest the unemployment rate has been in 16 years. The rate has reduced .5% on an absolute basis and 10% on a comparative basis since September 2016. While the unemployment rate is affected by a number of factors, overall this is a positive sign that signals future strengthening in economic fundamentals.

In the acquisition financing arena, capital availability is destiny as companies require reliable access to capital to grow over the long term. Unforeseen capital needs usually arise when acquirers least expect it. This can cause some concern for the acquisition financing provider, especially when covenants tighten up and that working capital availability is utilized faster than expected.

Mezzanine debt borrowing is usually a straightforward activity that many companies use for funding of transitional growth. Mezzanine debt lenders are highly transparent about their due diligence approach and their post-closing loan management making it easy for companies to engage with.

Elections have consequences and positive ones at that for the acquisition financing middle market. While much media attention is paid to the direction of the yield curve and the Fed’s likely rate cuts, scant attention is paid to the more important drivers of the acquisition financing market – business psychology and regulatory climate.

Unemployment Rate Gains

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