The competition to buy companies is as hot as ever, and that is forcing would-be purchasers to some eye-opening offers. TheDeal.com notes a few anecdotes about one buyout sponsor agreeing to underwrite the entire deal up front and lenders agreeing to fully financed commitments before the sponsor has inked a firm deal with the target. Some sponsors are imposing on banks to commit to deal financing with fewer contingencies. This sort of stuff goes on in booms, and this is definitely a boom. Of course, most people take it all as mere signs of silly-season, which signals a market top. That might not be a bad interpretation. As sellers eek out the upper hand, lenders have to be extra-disciplined. I think we all know this cannot last. It's just a matter of how it all ends. Here's hoping for an orderly downshift.

For more:
- read this article 
- more private equity news