Three PE deal-breakers revealed

Author: Gemma Varriale | Published: 2 Nov 2011

Negotiations between companies and private equity investors can be difficult, requiring time, diplomacy and collaborative discussions.

According to the IBA session on Tuesday November 1 titled 'Dealing with stakeholders – from cradle to the grave’, there are at least three contentious areas within the term sheet that both sides must be prepared to negotiate.

For those who missed session, here are some tips from the experts on how to approach negotiations.

Control

This is always the key factor for both company and investors, with private equity firms wanting to ensure that they have the appropriate level of influence over the business.

According to Andrew Thompson of Cravath Swaine & Moore in New York, acting for the investors in the mock negotiation panel "there would be serious issues on control if the company wanted to...