Why it’s time to revisit documentation

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Lenders have had a tough time at the negotiating table in a borrower-friendly market, but things may be changing.

With economic clouds gathering, there is a sense that now is as good a time as any for investors/lenders to start flexing their muscles again in deal negotiations. Indeed, some say they see signs of this already and one area they point to is the EBITDA addback – the tool used by many borrowers to increase their available leverage on the basis of assumed revenues that may not actually materialise.