Deal-contingent hedging

With continued market volatility and an evolving geopolitical landscape, mitigating financial risks associated with cross-border M&A transactions reduces the risks to closing for all parties involved and ensures the success of a deal. A deal-contingent hedge is an instrument that protects against...

Merger and acquisition activity slowed in the first half of 2024, mainly due to the higher interest rate environment. As the market anticipates further rate cuts into 2025, a record amount of dry powder that has been waiting on the sidelines is primed for deployment over the next six to 12...

Chatham Financial, a global leader in financial risk management advisory and technology, has established its newest office in Amsterdam under the leadership of Michel Post. Chatham’s new European hub furthers its commitment to serve companies internationally and help maximize value and mitigate...

In our Turn to Chatham video series, Jackie Bowie provides exclusive insights into market developments shaping the U.K. and Europe.

With market volatility hitting the headlines and the geopolitical landscape seemingly changing every week, risk management is once more at the forefront of every CFO’s mind. One instrument that has become an established part of any financial risk management toolbox is the deal-contingent hedge.

When your organization is preparing for a merger or acquisition, your treasury team can actively shape its success, assuming a pivotal role in the due diligence, financing, and post-merger integration processes.

A recent example of deal-contingent hedging for a large European private equity fund.

A multinational manufacturing company faced significant FX risk during its cross-border deal close window, while also seeking to understand and address capital structure implications of potential funding and risk management strategies.