Turn to Chatham: Enhancing M&A outcomes with independent hedge counterparties
Summary
In our Turn to Chatham video series, Jackie Bowie provides exclusive insights into market developments shaping the U.K. and Europe.
As M&A financing transitions away from traditional bank-led models to alternative providers, the dynamics of hedge counterparties are changing. Relying solely on bank-arranged hedging can limit competition and lead to captive relationships. By sourcing hedges directly from the market, M&A participants can achieve better pricing and more flexible structures. Successfully navigating the onboarding process with third-party hedge counterparties requires expertise in documentation, credit arrangements, and risk management strategies. With the right approach and partner, businesses can achieve more competitive and efficient hedging outcomes suited to their transaction needs.
M&A: Proactive risk management, hedging, and beyond
In our second episode of Expert Conversations: Beyond, Kern Roberts and Benoit Duhil de Benaze explore the challenges and opportunities in deal structuring and M&A activity. They highlight the importance of financial risk planning, discussing strategies such as pre-hedging, scenario analysis, and managing multi-currency exposures to help mitigate exposure in volatile markets.
Market rates and forward curves
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Disclaimers
This publication is issued by Chatham Financial (“Chatham”) solely for informational or discussion purposes exclusively to investment professionals, institutional investors, qualified investors, wholesale and professional clients and is not intended for, and should not be distributed to, retail clients. This communication is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution would be contrary to law or regulation. For further information on the regulatory status of the Chatham entity or entities involved in compiling this publication, please visit https://www.chathamfinancial.com/legal-notices. This publication neither constitutes an offer or solicitation in any jurisdiction in which such an offer or solicitation is not authorised nor does it constitute investment advice. Any views expressed herein are not intended to constitute investment research or a research recommendation.
