During this session, the panelists discussed the various types of transaction structures and key considerations when building and executing an exit strategy.
Session panelists included:
- Brian Gordon, Partner, McDermott Will & Emery
- Maria Navarro, Partner, McDermott Will & Emery
- Patrick Rowe, Partner, McDermott Will & Emery
- Nicole Schrumpf, Vice President, Jefferies & Company
- Greg Weigand, Partner, McDermott Will & Emery
IN DEPTH
Key takeaways included:
- There is no one-size-fits-all approach for transaction structures. The nature of the buyer (i.e., private equity fund, strategic acquirer) will affect how a deal is structured.
- The best deal isn’t always about the best price. Buyers use a variety of tools to protect the value of their investment by keeping sellers involved with companies following closing. It’s important to consider who is taking over the company and whether they will be a good fit culturally, financially, etc.
- As for investment motivation, financial buyers typically seek to maximize return for their investors whereas a strategic buyer may be looking to increase market share, realize synergies or expand into new operational or geographical territories. These motivational differences play a large part in how a buyer operates a target following a sale.
- Depending on the goals of the buyer and the seller, as well as current market conditions, equity sales, asset sales, mergers or minority investments are all strategies parties should consider when entering into a transaction.
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