Securing Exclusivity

This lesson will focus on a standard auction process led by an investment bank, which is known as a “sell-side engagement.” Fortunately, this process requires an exchange of documents that almost always follows the same sequence.

The confidentiality agreement (also known as a non-disclosure agreement) is a legal agreement between parties to keep confidential the information required to review a transaction. While the objective is nearly always the same, the format never is. Lacking a uniform standard means that each CA must be reviewed and sometimes edited before it is executed. In this lesson we will explore why this document is so important and highlight items to be aware of. 

The lesson will teach you how to approach a confidential information memorandum (CIM) for a private equity transaction.

In this lesson you will learn about the indication of interest (IOI). The indication of interest (IOI) is a non-binding document prepared by the buyer and delivered to the investment banker representing the transaction to communicate interest in the investment opportunity presented. 

In this lesson you will learn how private equity firms work to submit an indication of interest with limited information. There is a lot of strategy and gamesmanship involved, and knowing how other firms operate will provide an advantage in the process.