Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
Acquisition and leveraged finance law refers to the legal frameworks and advisory services that facilitate the acquisition of companies, assets, or business interests through borrowed funds. In Perth, Australia, this area of law plays a significant role in supporting the resources, mining, real estate, and corporate sectors which frequently undertake mergers, acquisitions, and similar transactions involving complex financial structures. Leveraged finance specifically involves the use of significant debt, often secured against the target company’s assets or cash flows, to achieve these transactions. This legal discipline covers various aspects including loan structuring, security arrangements, compliance with regulatory requirements, and negotiation of finance documentation.
There are many scenarios where a lawyer specializing in acquisition and leveraged finance may be crucial. If you are planning to acquire a business using borrowed funds, navigating the deal structure and related documentation without expert advice poses significant risks. Lawyers can help protect your interests whether you are a borrower, lender, investor, or target business. Common situations where legal help is advantageous include:
Several statutory frameworks and regulatory bodies affect acquisition and leveraged finance transactions in Perth, Western Australia:
Compliance with these laws is crucial to maintaining the validity and enforceability of finance arrangements, protecting all involved parties from unwanted liabilities or delays.
Leveraged finance refers to funding where a high ratio of debt (compared to equity) is used to finance an acquisition. The acquired company or its assets often serve as security for the loan.
Australian law restricts a company from financially assisting someone to acquire its own shares unless specific procedures, such as shareholder approval, are followed under the Corporations Act.
Due diligence helps identify risks and liabilities of the target business, ensuring that all financial, legal, and operational aspects are fully understood before committing to a transaction.
FIRB approval is required if the buyer is a foreign person or entity and the transaction value or asset type triggers thresholds set by the Australian government, particularly for sensitive sectors.
Lenders commonly take security over the shares of the target company, its assets, and sometimes its cash flows. These security interests must be properly registered on the Personal Property Securities Register (PPSR).
Stamp duty may be payable on the transfer of certain assets, particularly land. There are exemptions for some share transactions, so legal advice is recommended to determine liability.
If the borrower defaults, lenders may enforce security by taking control of the secured assets, appointing receivers, or pursuing other remedies as set out in the finance documents.
Yes. For example, acquisitions involving mining interests or agricultural land may require additional approvals and compliance with sector-specific legislation.
Mergers and acquisitions must be assessed for their impact on competition. The ACCC can intervene in transactions that may substantially lessen market competition.
A lawyer ensures transactions are properly structured, legally compliant, and risks are managed. They also negotiate terms and help resolve disputes that may arise during or after the transaction.
If you are considering or are involved in an acquisition or leveraged finance transaction in Perth, Australia, consider the following actions:
Early legal advice can prevent costly mistakes, ensure your transaction proceeds smoothly, and protect your commercial and financial interests. Start by reaching out to a reputable legal advisor experienced in Perth’s acquisition and leveraged finance context.
