Private Equity’s Post

Housing.com's 2015 case shows how a single flaw in an investor agreement can lead to crores in losses! 🚨🚨 In 2015, Housing.com, a real estate search portal, faced a crisis. Despite substantial investments, including $90 million from 𝐒𝐨𝐟𝐭𝐁𝐚𝐧𝐤, internal conflicts between 𝐟𝐨𝐮𝐧𝐝𝐞𝐫𝐬 𝐚𝐧𝐝 𝐢𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬 𝐞𝐬𝐜𝐚𝐥𝐚𝐭𝐞𝐝. The ousting of co-founder and 𝐂𝐄𝐎 𝐑𝐚𝐡𝐮𝐥 𝐘𝐚𝐝𝐚𝐯 revealed flaws in the investor agreements, lacking clear conflict resolution and founder protection clauses. This turmoil led to a 𝐩𝐥𝐮𝐦𝐦𝐞𝐭𝐢𝐧𝐠 𝐯𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧 𝐚𝐧𝐝 𝐬𝐢𝐠𝐧𝐢𝐟𝐢𝐜𝐚𝐧𝐭 𝐢𝐧𝐯𝐞𝐬𝐭𝐨𝐫 𝐥𝐨𝐬𝐬𝐞𝐬. 𝐖𝐡𝐚𝐭 𝐂𝐨𝐮𝐥𝐝 𝐇𝐚𝐯𝐞 𝐇𝐞𝐥𝐩𝐞𝐝? A robust "𝐂𝐨𝐧𝐟𝐥𝐢𝐜𝐭 𝐑𝐞𝐬𝐨𝐥𝐮𝐭𝐢𝐨𝐧" clause and a clear "𝐅𝐨𝐮𝐧𝐝𝐞𝐫 𝐕𝐞𝐬𝐭𝐢𝐧𝐠 𝐚𝐧𝐝 𝐄𝐱𝐢𝐭" clause could have mitigated the fallout and protected all parties involved. 5 Essential Clauses to Include in an Investor Agreement 🚨 1️⃣ 𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐌𝐢𝐥𝐞𝐬𝐭𝐨𝐧𝐞 𝐀𝐝𝐣𝐮𝐬𝐭𝐦𝐞𝐧𝐭 𝐂𝐥𝐚𝐮𝐬𝐞: Define performance milestones with flexible timelines. 2️⃣ 𝐃𝐢𝐬𝐩𝐮𝐭𝐞 𝐑𝐞𝐬𝐨𝐥𝐮𝐭𝐢𝐨𝐧 𝐂𝐥𝐚𝐮𝐬𝐞: Establish a clear mechanism for arbitration. 3️⃣ 𝐄𝐱𝐢𝐭 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐲 𝐂𝐥𝐚𝐮𝐬𝐞: Define conditions for investor exit, including buyback options. 4️⃣ 𝐂𝐨𝐧𝐟𝐢𝐝𝐞𝐧𝐭𝐢𝐚𝐥𝐢𝐭𝐲 𝐚𝐧𝐝 𝐍𝐨𝐧-𝐂𝐨𝐦𝐩𝐞𝐭𝐞 𝐂𝐥𝐚𝐮𝐬𝐞: Protect sensitive business information. 5️⃣ 𝐅𝐨𝐫𝐜𝐞 𝐌𝐚𝐣𝐞𝐮𝐫𝐞 𝐂𝐥𝐚𝐮𝐬𝐞: Include provisions for unexpected events impacting business operations. At Dastawezz, we understand the intricacies of investor agreements. Our experienced legal team provides tailored solutions to ensure comprehensive and secure agreements. 📩 DM today for a FREE 15-minute consultation call. (𝐎𝐧𝐥𝐲 𝐯𝐚𝐥𝐢𝐝 𝐟𝐨𝐫 𝐚 𝐥𝐢𝐦𝐢𝐭𝐞𝐝 𝐩𝐞𝐫𝐢𝐨𝐝) ⏳ #legalservices #legalconsultation #legalconsultants

Don't let financing hold your new business back! 💼 In today's tough economy, securing funds can be a challenge. Let us, your trusted Calgary financing and securities lawyer, help you craft a winning business plan and detailed funding request with financial projections. https://lnkd.in/gra7A-f3 #yyc #calgary #legal #alberta #albertalaw #calgarylaw #calgarylawyer #lawyer #legalassistance #corporatelaw #corporatelawyer #businessfinancing #financinglawyer

📢 Don't miss out on the panel 𝗡𝗮𝘃𝗶𝗴𝗮𝘁𝗶𝗻𝗴 𝗥𝗲𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗶𝗻𝗴 𝗗𝘆𝗻𝗮𝗺𝗶𝗰𝘀: 𝗨𝗻𝘃𝗲𝗶𝗹𝗶𝗻𝗴 𝘁𝗵𝗲 𝗟𝗲𝘃𝗲𝗿𝗮𝗴𝗲, 𝗜𝗺𝗽𝗮𝗰𝘁𝘀, 𝗮𝗻𝗱 𝗢𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀 𝗦𝘂𝗿𝗿𝗼𝘂𝗻𝗱𝗶𝗻𝗴 𝗡𝗣𝗟 𝗩𝗮𝗹𝘂𝗲 for the 𝟯𝟲𝟬° 𝗗𝗗𝗖 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀' 𝗦𝘂𝗺𝗺𝗶𝘁: 𝗘𝘂𝗿𝗼𝗽𝗲 𝗮𝗻𝗱 𝗧𝗵𝗲 𝗠𝗶𝗱𝗱𝗹𝗲 𝗘𝗮𝘀𝘁! ❗️ November 16-17 | Athens, Greece 🔎 Event details: https://bit.ly/44QwT7F The session will touch on the following topics: 🔹 Strategies for lenders and investors upon out-of-court restructurings 🔹 Overcoming restructuring toolkits across Europe that may hinder debt recovery 🔹 Debt management upon formal insolvency and the role of secured creditors in pre-packed arrangements 🔹 Leverage that buyers have in a restructuring and the effects that may be triggered such as cramdowns and exit rights for secured NPLs The panel will be moderated by Juan Verdugo García, Partner - Restructuring & Insolvency, Garrigues, with panelists including: Jose Maria Gil-Robles, Partner at DLA Piper Elena Venizelou, Managing Partner at Venizelou Law and Associates Manuel Roca de Togores Atienza, COO & Founding Partner of NK5 Register NOW and be part of this engaging discussion! 👉👉 https://bit.ly/3OkRdGW #DDCSummits #Distresseddebt #Alternatives #Europe #MiddleEast #NPL #REO #Greece #Alternatives #Restructuring #LawFirms #Insolvency

Mastering the Art of Negotiation and Deal Structuring in Private Equity: A Comprehensive Guide

📆 SAVE THE DATE - 27 Jun 2024 📆 Registration will soon be open for R3 and INSOL Europe's International Restructuring Conference in London, focusing on cross-border restructuring and insolvency. The event is for all restructuring and insolvency professionals, with an interest in cross-border matters, including financial advisers, lenders, distressed asset investors, judges and academics. Find out more here: ➡️ https://lnkd.in/g7AKtpc R3 Association of Business Recovery Professionals #INSOLEurope #insolvencyprofessional #insolvencynews #insolvencypartners

How do you successfully make an offer and close the deal on a UK property? 🤝 From understanding market value to finalising legal checks, each step is critical. Ensure your investment is safeguarded by meticulously completing due diligence. Follow for a walkthrough of these steps and contact me for personalised advice! #ClosingDeals #PropertyInvestment #UKRealEstate

❔ Did you know ❔ INSOL Europe's technical content is a major provider of information for professionals who specialise in insolvency, business reconstruction and recovery across Europe and beyond. Our 'State Reports' provide a comprehensive database of National, EU and International Resources. Take a look here: 📃 https://lnkd.in/eP7zt39g #INSOLEurope #insolvencyprofessional #insolvencynews

For all our business owners, one thing we commonly review (and commonly recommend edits to) is your shareholder agreement. First of all, in many cases, there is no existing agreement written on paper and secondly, in a lot of cases the agreement is outdated and needs revision. 🤝📜 A shareholders’ agreement provides several important benefits for businesses. Here are some key advantages although this is not an exhaustive list: 1. Clear Guidelines: A shareholders’ agreement outlines specific rules and guidelines for shareholders and directors. It helps prevent misunderstandings and provides clarity on how to address various situations within the company. 2. Investment Protection: The agreement safeguards the rights and protections of each shareholder. It ensures fair treatment concerning their investments and ownership stakes in the company. 3. Dispute Resolution: Shareholders’ agreements proactively address potential disputes. By specifying dispute resolution mechanisms in advance, the agreement helps resolve issues productively. 4. Ownership Control: The agreement defines the terms and conditions for shareholders’ ownership. It can include pre-emptive rights, which allow existing shareholders to purchase newly issued shares before others, preventing unwanted dilution of ownership. 5. Flexibility: Shareholders’ agreements can be tailored to the unique needs of the company and its shareholders. Whether it’s equal partnership or silent investors, the agreement can adapt to different scenarios. 6. Veto Powers: Silent investors may wish to retain veto power over key management decisions, such as changes in business vision, control shifts, or restructuring initiatives. Remember that while there is no legal obligation to have a shareholders’ agreement, the benefits it offers make it a valuable tool for any corporation in Canada. We've seen many cases where the shareholder agreement has prevented lawsuits, saved friendships and even saved a business. Take the time to have a proper agreement drawn up before it's too late! 🤝📜 #ShareholdersAgreement #BusinessOwners #InvestmentProtection #DisputeResolution #OwnershipControl #BusinessPartnership #CorporateLaw #CanadianBusiness #BusinessSuccess #CorporateStrategy #anholtgroup

Stephan Pastor, Emeline Elbaz, Coralie Trudon and Daniel Goldenbaum from our Business Law team explain how to invest in Monaco, what are the most common business structures, what regulations to follow and what are the advantages of Monaco as a business location in the Legal 500 Doing Business in Monaco guide: https://lnkd.in/dPf3K4Ha #CMS #Monaco #business #businesslaw #investment

Due Diligence refers to the practice of investigating or auditing a prospective investment in order to confirm facts. It is effectively the care any reasonable party should take before entering into any legal agreement or financial transaction. We work on a range of property finance transactions - supporting lenders with due diligence ensuring their funds are properly protected. https://lnkd.in/ewHFkA5J #wednesdaywisdom #duediligence #propertyfinance #commercialfinance #propertylawyers #propertylaw