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Private Equity Agreement
"I need a Private Equity Agreement for a A$50 million investment into an Australian technology startup, with specific provisions for anti-dilution protection and an IPO exit option targeted for March 2025."
1. Parties: Identifies all parties to the agreement, including the private equity firm, target company, and any other relevant stakeholders
2. Background: Sets out the context of the transaction and the parties' intentions
3. Definitions: Defines key terms used throughout the agreement
4. Investment Terms: Details the investment structure, purchase price, and payment terms
5. Conditions Precedent: Specifies conditions that must be satisfied before completion
6. Completion Mechanics: Outlines the process and requirements for closing the transaction
7. Warranties and Representations: Contains statements of fact and assurances from the parties
8. Governance Rights: Establishes board composition, voting rights, and management control
9. Reserved Matters: Lists decisions requiring specific shareholder approval
10. Transfer Restrictions: Sets out limitations on share transfers and ownership changes
11. Exit Provisions: Details mechanisms for future sale or IPO of the company
12. Confidentiality: Governs the treatment of confidential information
13. Dispute Resolution: Establishes procedures for resolving disputes
14. General Provisions: Contains standard boilerplate clauses and miscellaneous terms
1. Anti-Dilution Protection: Protects investors from dilution in future funding rounds - included when dealing with companies likely to require future capital raises
2. Tag-Along Rights: Allows minority shareholders to join in the sale of shares by majority shareholders - included when there are multiple shareholders
3. Drag-Along Rights: Enables majority shareholders to force minority shareholders to join in the sale - included when there are multiple shareholders
4. Employee Share Scheme: Establishes framework for employee equity participation - included when management incentivization is part of the deal
5. Environmental, Social and Governance (ESG): Sets out ESG requirements and reporting - included when ESG compliance is a key consideration
6. Foreign Investment Conditions: Additional provisions for foreign investors - included when foreign investment approval is required
7. Earn-out Provisions: Details performance-based additional payments - included when part of purchase price is contingent on future performance
1. Schedule 1 - Company Details: Complete corporate information, share capital structure, and subsidiaries
2. Schedule 2 - Warranties: Detailed warranties and representations given by the parties
3. Schedule 3 - Reserved Matters: Comprehensive list of decisions requiring special approval
4. Schedule 4 - Completion Deliverables: List of documents and actions required at completion
5. Schedule 5 - Key Performance Indicators: Specific performance metrics and targets
6. Schedule 6 - Management Agreement Terms: Key terms of management employment or service agreements
7. Appendix A - Share Capital Table: Detailed breakdown of shareholding pre and post-investment
8. Appendix B - Business Plan: Agreed business plan and financial projections
9. Appendix C - Corporate Structure Chart: Diagram showing corporate structure and ownership
Authors
Technology
Healthcare
Manufacturing
Retail
Financial Services
Infrastructure
Real Estate
Consumer Goods
Professional Services
Energy
Mining
Agriculture
Education
Media and Entertainment
Legal
Finance
Corporate Development
Investment
Risk and Compliance
Due Diligence
Board of Directors
Executive Leadership
Corporate Governance
Treasury
Mergers and Acquisitions
Chief Executive Officer
Chief Financial Officer
General Counsel
Investment Director
Private Equity Partner
Corporate Lawyer
Investment Manager
Due Diligence Manager
Transaction Advisory Manager
Company Secretary
Risk Manager
Compliance Officer
Board Director
Managing Director
Investment Analyst
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