Closing the Transaction
Once a private equity investment has been secured under letter of intent, the private equity firm is granted an exclusivity period to close the transaction. This starts the clock and provides a deadline for the work required to complete due diligence and negotiate the definitive agreements. In this course you will learn what is required to close.
This lesson covers advanced due diligence for a private equity transaction.
Legal due diligence is largely comprised of “confirmatory” due diligence. In this lesson we will explore this area of due diligence. The workbook available for download provides a list of questions and data requests that can be helpful in this process.
In this lesson the significance of the working capital adjustment in a purchase agreement is explained with a narrative. To provide context, the video assumes that the viewer is an entrepreneur that is selling the business they founded.
In the previous lesson the working capital adjustment was explained in the context of an acquisition. In this lesson we will dive a little deeper into the calculation required by this adjustment and the documents that are exchanged in the process.
This lesson describes the process of successfully engaging lenders to fund and close a control private equity investment.
This lesson walks through a senior lender term sheet and addresses a few additional items to be aware of as the private equity firm evaluates capital structure.
One of the most fundamental decisions in a deal process is whether to structure the transaction as a stock or asset purchase. This lesson will explore the pros and cons of both options.
As it relates to the purchase agreement there are two potential approaches: (1) a simultaneous sign and close, and (2) a deferred closing. In this lesson you will learn why it is sometimes practical to pursue a deferred closing even though it can make negotiation more difficult.