Buyout funds operate in an increasingly competitive environment. Whether a classic LBO, MBO or MBI, fund managers and management teams face auctions and complex tendering procedures with tight deadlines often in direct competition with potential strategic/corporate investors.

The necessity for leveraged financing and the intricacies of management participations and incentive schemes add further complexity to transactions. 

Our experience in buyout transactions goes far beyond executing the transaction. We understand: 

• the complexity of your business, its value drivers and regulatory constraints 
• how you earn your money and how your incentive/carried interest schemes are set up
• the requirements of the debt providers (senior and mezzanine and an increasingly diverse base of lenders) and the processes necessary to get them on board
• the constraints of the management teams, their expectations and concerns 

Dentons’ lawyers are able to complete your deal wherever and whenever you need us. Through our global delivery of integrated legal and tax services and based on vast experience sourced from hundreds of transactions, we are able to anticipate and respond to your needs and to help you in fulfilling your goals.

Insights

Representation, Warranty and Indemnity (RW&I) Insurance

March 12, 2024

South Africa: International Perspectives informing a South African approach - Merger and acquisition (M&A) transactions involve a level of risk for buyers. To mitigate the risks, buyers conduct thorough due diligence investigations on target companies, and require sellers to provide representations, warranties and indemnities (RW&Is) in transaction agreements.

Sustainable and Responsible Investments

November 16, 2023

South Africa: In South Africa and globally, the long-term implications of Environmental, Social and Governance (ESG) integration in due diligence processes on M&A transactions are yet to become fully apparent. However, as companies have progressively included ESG factors in their due diligence, these processes have been reported to cause the cancellation of more than half of all merger and acquisition (M&A) deals this year.