Negotiating with Private Equity Investors

About the Course:

This unique webinar reviews a sample Letter of Intent from a Private Equity acquirer. Failure to understand the nuances of seemingly self-evident terms in LOIs from Private Equity firms can be disastrous. The following are among the key terms discussed during this part of the program:

  • Cash free / debt free basis for acquisition
  • Combination of senior debt and equity
  • Escrow
  • Working capital adjustments
  • Equity reinvestment
  • Management compensation
  • Management option pool
  • Non-competition agreements
  • Due diligence
  • Definitive documentation

This course provides a detailed case study of leveraged recapitalizations. From this case study listeners will learn how initial valuations, ownership structure, and capitalizations affect pro forma ownership structure.

The following are among the additional issues discussed during this session:

  • What are the differences between funded sponsors, family offices, and pledge funds in terms of reporting structure, management commitment, and decision making styles?
  • How can market dominance hinder a potential portfolio company's negotiating position with PE firms?
  • What preparatory financial steps should a company take before commencing negotiations with PE firms?
  • What are the merits of conducting pre-sale due diligence?
  • Which assets or liabilities should be removed before a stock transaction?
  • Which "value leakages" should you be aware of?
  • How can a company break exclusive negotiating periods with private equity firms?
  • When, in a PE transaction, should you negotiate employment agreements?
  • At what points in the life of a PE fund are the private equity partners most eager (and most reticent) to invest in new businesses?

Course Leader: Gregory B. Sneddon, Senior Managing Director, Consilium Partners

Prior to co-founding Consilium Partners, Greg served as Managing Director and Group Head of the Middle Market Mergers and Acquisitions Group at FleetBoston Corporation where he was responsible for managing a group of M&A professionals with a focus on transaction sizes ranging from $10 million to $250 million. Prior to his position as head of the Middle-Market Mergers & Acquisitions Group, Greg was a Managing Director in the Mergers & Acquisitions Group of BancBoston Robertson Stephens, where he specialized in a range of sell-side and buy-side transactions in the Technology, Consumer, Industrial Growth and Media/Telecom sectors, and served as a permanent member of the firm's Fairness Opinion Review Committee.

Greg holds both an M.B.A. and M.S. in Finance from Boston College, and a Bachelor in Science degree in Computer Information Systems from Bentley College. Greg also holds the Chartered Financial Analyst certification, and is a member of the Boston Security Analysts' Society and the Association for Investment Management and Research.

Course Length: Approx. 1.5 hours

$295.00 PER USER

Purchase Now:

Need help purchasing this course? Please contact Neomi Barazani at 609-919-1895 ext. 100 or at