Valuations & Acquisitions: Dealing With an October Surprise

“No debt means a company has a cleaner, stronger balance sheet and doesn’t have to abide by onerous covenants,” Helman says, “which is a good thing when huge growth is in the offing. If there is leverage and huge growth expected, then something below plan happens. Banks today have little to no patience. When covenants are violated, the banks control the situation.”