Categories
Discover our Courses
Featured Pathways
More pathways
Banking Essentials - Part I
This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.
Greenwashing
Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.
More pathways
Ready to get started?
Plans & Membership
Find the right plan for you
Our Platform
Expert led content
+1,000 expert presented, on-demand video modules
Learning analytics
Keep track of learning progress with our comprehensive data
Interactive learning
Engage with our video hotspots and knowledge check-ins
Testing & certification
Gain CPD / CPE credits and professional certification
Managed learning
Build, scale and manage your organisation’s learning
Integrations
Connect Finance Unlocked to your current platform
Featured Content
More featured content
Tackling the Cost of Living Crisis
In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.
CSR and Sustainability in Financial Services
In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.
More featured content
Ready to get started?
Our Solutions
About Us
Testimonials
More testimonials
Mark Homans
Our sky high NPS following learner feedback speaks for itself - this platform has delivered a lot of value.
Fiona Quinn
Learning is accessible and the tool assists in the continued development of all our employees. It is a fantastic tool for our business!
More testimonials
Ready to get started?
Categories
Discover our Courses
Featured Pathways
More pathways
Banking Essentials - Part I
This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.
Greenwashing
Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.
More pathways
Ready to get started?
Plans & Membership
Find the right plan for you
Our Platform
Expert led content
+1,000 expert presented, on-demand video modules
Learning analytics
Keep track of learning progress with our comprehensive data
Interactive learning
Engage with our video hotspots and knowledge check-ins
Testing & certification
Gain CPD / CPE credits and professional certification
Managed learning
Build, scale and manage your organisation’s learning
Integrations
Connect Finance Unlocked to your current platform
Featured Content
More featured content
Tackling the Cost of Living Crisis
In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.
CSR and Sustainability in Financial Services
In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.
More featured content
Ready to get started?
Our Solutions
About Us
Testimonials
More testimonials
Mark Homans
Our sky high NPS following learner feedback speaks for itself - this platform has delivered a lot of value.
Fiona Quinn
Learning is accessible and the tool assists in the continued development of all our employees. It is a fantastic tool for our business!
More testimonials
Ready to get started?
Private Equity Deal Structuring
Gavin Ryan
25 years: Private equity & banking
A private equity investor is looking to deploy flexibility in deal structuring, to give him a competitive advantage over other, more constrained investors. Gavin will discuss the extent of this flexibility by describing the approach of private equity investors and some of the financial and non financial instruments included in a deal.
A private equity investor is looking to deploy flexibility in deal structuring, to give him a competitive advantage over other, more constrained investors. Gavin will discuss the extent of this flexibility by describing the approach of private equity investors and some of the financial and non financial instruments included in a deal.
Subscribe to watch
Access this and all of the content on our platform by signing up for a 14-day free trial.
Private Equity Deal Structuring
10 mins
A private equity investor is looking to deploy flexibility in deal structuring, because it will give him a competitive advantage over other, more constrained investors. We can think of a private equity deal structure as being made up from components of a menu of both financial and non financial instruments. We have ordinary shares, which can be either a small minority, an influential minority; or a majority. We have preference shares, which are much more customisable than ordinary shares. Non financial instruments include board seats, veto rights and ratchet mechanisms. Reporting requirements and enforcement mechanisms are also important.
Key learning objectives:
Outline the approach of PE investors
Understand the difference between financial and non-financial instruments.
Identify the main obstacles to successful deals
Subscribe to watch
Access this and all of the content on our platform by signing up for a 14-day free trial.
What is the approach of private equity investors?
A private equity investor sees an investment as a partnership with other shareholders and management, which needs to be “win-win” to be sustainable. A private equity investor is looking to deploy flexibility in deal structuring, because it will give him a competitive advantage over other, more constrained investors. A private equity investor is looking to align management’s interests with their objective of increasing the value of the company.Which financial and non financial instruments can exist in a private equity deal structure?
- A private equity investor is able to make use of customised financial instruments such as preference shares, or use more than one financial instrument in a transaction.
- A seat on the board of directors will give the private equity investor influence over company decisions he may not otherwise have.
- Veto rights means there will be a list of company decisions that cannot be made without the approval of the private equity investor, even if he is in a minority in the company.
- A ratchet mechanism is an arrangement according to which, if there is a shortfall, the private equity investor gets compensated proportionately.
What are some obstacles to deals?
Obstacles include high valuation expectations by sellers, reluctance to give up control by founders, image concerns, lack of commitment to exit, difficulty in understanding complex deal structures. A private equity fund manager needs good communication skills to build trust and acceptance of deal complexities. This is even more important in Emerging Markets, where there may be less familiarity with private equity.Subscribe to watch
Access this and all of the content on our platform by signing up for a 14-day free trial.
Gavin Ryan
There are no available videos from "Gavin Ryan"