i Table of contents 746

Private Equity 2025

Definitive global law guides offering comparative analysis from top-ranked lawyers

INTRODUCTION		7
Contributed by Markus Paul, Freshfields		7
AUSTRIA		12
Law and Practice		12
Contributed by Kinstellar		12
1. Transaction Activity		15
1.1 Private Equity Transactions and M&A Deals in General		15
1.2 Market Activity and Impact of Macro-Economic Factors		16
2. Private Equity Developments		16
2.1 Impact of Legal Developments on Funds and Transactions		16
3. Regulatory Framework		16
3.1 Primary Regulators and Regulatory Issues		16
4. Due Diligence		17
4.1 General Information		17
4.2 Vendor Due Diligence		17
5. Structure of Transactions		17
5.1 Structure of the Acquisition		17
5.2 Structure of the Buyer		18
5.3 Funding Structure of Private Equity Transactions		18
5.4 Multiple Investors		18
6. Terms of Acquisition Documentation		18
6.1 Types of Consideration Mechanism		18
6.2 Locked-Box Consideration Structures		19
6.3 Dispute Resolution for Consideration Structures		19
6.4 Conditionality in Acquisition Documentation		19
6.5 “Hell or High Water” Undertakings		20
6.6 Break Fees		20
6.7 Termination Rights in Acquisition Documentation		20
6.8 Allocation of Risk		20
6.9 Warranty and Indemnity Protection		21
6.10 Other Protections in Acquisition Documentation		21
6.11 Commonly Litigated Provisions		21
7. Takeovers		22
7.1 Public-to-Private		22
7.2 Material Shareholding Thresholds and Disclosure in Tender Offers		22
7.3 Mandatory Offer Thresholds		22
7.4 Consideration		23
7.5 Conditions in Takeovers		23
7.6 Acquiring Less Than 100%		23
7.7 Irrevocable Commitments		23
8. Management Incentives		24
8.1 Equity Incentivisation and Ownership		24
8.2 Management Participation		24
8.3 Vesting/Leaver Provisions		24
8.4 Restrictions on Manager Shareholders		24
8.5 Minority Protection for Manager Shareholders		24
9. Portfolio Company Oversight		25
9.1 Shareholder Control and Information Rights		25
9.2 Shareholder Liability		25
10. Exits		25
10.1 Types of Exit		25
10.2 Drag and Tag Rights		25
10.3 IPO		26
Trends and Developments		27
Contributed by Kinstellar		27
BRAZIL		33
Law and Practice		33
Contributed by Lacerda Diniz Advogados		33
1. Transaction Activity		36
1.1 Private Equity Transactions and M&A Deals in General		36
1.2 Market Activity and Impact of Macro-Economic Factors		36
2. Private Equity Developments		37
2.1 Impact of Legal Developments on Funds and Transactions		37
3. Regulatory Framework		37
3.1 Primary Regulators and Regulatory Issues		37
4. Due Diligence		38
4.1 General Information		38
4.2 Vendor Due Diligence		39
5. Structure of Transactions		39
5.1 Structure of the Acquisition		39
5.2 Structure of the Buyer		40
5.3 Funding Structure of Private Equity Transactions		40
5.4 Multiple Investors		40
6. Terms of Acquisition Documentation		41
6.1 Types of Consideration Mechanism		41
6.2 Locked-Box Consideration Structures		41
6.3 Dispute Resolution for Consideration Structures		42
6.4 Conditionality in Acquisition Documentation		42
6.5 “Hell or High Water” Undertakings		42
6.6 Break Fees		43
6.7 Termination Rights in Acquisition Documentation		43
6.8 Allocation of Risk		43
6.9 Warranty and Indemnity Protection		43
6.10 Other Protections in Acquisition Documentation		44
6.11 Commonly Litigated Provisions		44
7. Takeovers		44
7.1 Public-to-Private		44
7.2 Material Shareholding Thresholds and Disclosure in Tender Offers		44
7.3 Mandatory Offer Thresholds		44
7.4 Consideration		45
7.5 Conditions in Takeovers		45
7.6 Acquiring Less Than 100%		45
7.7 Irrevocable Commitments		45
8. Management Incentives		46
8.1 Equity Incentivisation and Ownership		46
8.2 Management Participation		46
8.3 Vesting/Leaver Provisions		46
8.4 Restrictions on Manager Shareholders		47
8.5 Minority Protection for Manager Shareholders		47
9. Portfolio Company Oversight		47
9.1 Shareholder Control and Information Rights		47
9.2 Shareholder Liability		48
10. Exits		48
10.1 Types of Exit		48
10.2 Drag and Tag Rights		49
10.3 IPO		49
Trends and Developments		50
Contributed by Lacerda Diniz Advogados		50
BRITISH VIRGIN ISLANDS		55
Law and Practice		55
Contributed by Maples Group		55
1. Transaction Activity		58
1.1 Private Equity Transactions and M&A Deals in General		58
1.2 Market Activity and Impact of Macro-Economic Factors		58
2. Private Equity Developments		58
2.1 Impact of Legal Developments on Funds and Transactions		58
3. Regulatory Framework		60
3.1 Primary Regulators and Regulatory Issues		60
4. Due Diligence		61
4.1 General Information		61
4.2 Vendor Due Diligence		61
5. Structure of Transactions		61
5.1 Structure of the Acquisition		61
5.2 Structure of the Buyer		61
5.3 Funding Structure of Private Equity Transactions		62
5.4 Multiple Investors		62
6. Terms of Acquisition Documentation		62
6.1 Types of Consideration Mechanism		62
6.2 Locked-Box Consideration Structures		62
6.3 Dispute Resolution for Consideration Structures		62
6.4 Conditionality in Acquisition Documentation		62
6.5 “Hell or High Water” Undertakings		62
6.6 Break Fees		62
6.7 Termination Rights in Acquisition Documentation		62
6.8 Allocation of Risk		62
6.9 Warranty and Indemnity Protection		62
6.10 Other Protections in Acquisition Documentation		62
6.11 Commonly Litigated Provisions		62
7. Takeovers		63
7.1 Public-to-Private		63
7.2 Material Shareholding Thresholds and Disclosure in Tender Offers		63
7.3 Mandatory Offer Thresholds		63
7.4 Consideration		63
7.5 Conditions in Takeovers		63
7.6 Acquiring Less Than 100%		63
7.7 Irrevocable Commitments		63
8. Management Incentives		64
8.1 Equity Incentivisation and Ownership		64
8.2 Management Participation		64
8.3 Vesting/Leaver Provisions		64
8.4 Restrictions on Manager Shareholders		64
8.5 Minority Protection for Manager Shareholders		64
9. Portfolio Company Oversight		64
9.1 Shareholder Control and Information Rights		64
9.2 Shareholder Liability		64
10. Exits		64
10.1 Types of Exit		64
10.2 Drag and Tag Rights		64
10.3 IPO		64
BULGARIA		65
Trends and Developments		65
Contributed by Komarevski Dimitrov & Partners		65
CANADA		73
Law and Practice		73
Contributed by Fasken		73
1. Transaction Activity		76
1.1 Private Equity Transactions and M&A Deals in General		76
1.2 Market Activity and Impact of Macro-Economic Factors		76
2. Private Equity Developments		77
2.1 Impact of Legal Developments on Funds and Transactions		77
3. Regulatory Framework		80
3.1 Primary Regulators and Regulatory Issues		80
4. Due Diligence		82
4.1 General Information		82
4.2 Vendor Due Diligence		82
5. Structure of Transactions		83
5.1 Structure of the Acquisition		83
5.2 Structure of the Buyer		83
5.3 Funding Structure of Private Equity Transactions		83
5.4 Multiple Investors		84
6. Terms of Acquisition Documentation		84
6.1 Types of Consideration Mechanism		84
6.2 Locked-Box Consideration Structures		85
6.3 Dispute Resolution for Consideration Structures		85
6.4 Conditionality in Acquisition Documentation		85
6.5 “Hell or High Water” Undertakings		85
6.6 Break Fees		85
6.7 Termination Rights in Acquisition Documentation		86
6.8 Allocation of Risk		86
6.9 Warranty and Indemnity Protection		87
6.10 Other Protections in Acquisition Documentation		87
6.11 Commonly Litigated Provisions		88
7. Takeovers		88
7.1 Public-to-Private		88
7.2 Material Shareholding Thresholds and Disclosure in Tender Offers		88
7.3 Mandatory Offer Thresholds		89
7.4 Consideration		89
7.5 Conditions in Takeovers		89
7.6 Acquiring Less Than 100%		89
7.7 Irrevocable Commitments		89
8. Management Incentives		90
8.1 Equity Incentivisation and Ownership		90
8.2 Management Participation		90
8.3 Vesting/Leaver Provisions		90
8.4 Restrictions on Manager Shareholders		91
8.5 Minority Protection for Manager Shareholders		91
9. Portfolio Company Oversight		92
9.1 Shareholder Control and Information Rights		92
9.2 Shareholder Liability		92
10. Exits		92
10.1 Types of Exit		92
10.2 Drag and Tag Rights		92
10.3 IPO		93
Trends and Developments		94
Contributed by Fasken		94
CAYMAN ISLANDS		103
Trends and Developments		103
Contributed by Maples Group		103
CHINA		112
Law and Practice		112
Contributed by Lifeng Partners		112
1. Transaction Activity		115
1.1 Private Equity Transactions and M&A Deals in General		115
1.2 Market Activity and Impact of Macro-Economic Factors		115
2. Private Equity Developments		115
2.1 Impact of Legal Developments on Funds and Transactions		115
3. Regulatory Framework		115
3.1 Primary Regulators and Regulatory Issues		115
4. Due Diligence		116
4.1 General Information		116
4.2 Vendor Due Diligence		116
5. Structure of Transactions		116
5.1 Structure of the Acquisition		116
5.2 Structure of the Buyer		116
5.3 Funding Structure of Private Equity Transactions		117
5.4 Multiple Investors		117
6. Terms of Acquisition Documentation		117
6.1 Types of Consideration Mechanism		117
6.2 Locked-Box Consideration Structures		117
6.3 Dispute Resolution for Consideration Structures		117
6.4 Conditionality in Acquisition Documentation		117
6.5 “Hell or High Water” Undertakings		118
6.6 Break Fees		118
6.7 Termination Rights in Acquisition Documentation		118
6.8 Allocation of Risk		118
6.9 Warranty and Indemnity Protection		118
6.10 Other Protections in Acquisition Documentation		118
6.11 Commonly Litigated Provisions		118
7. Takeovers		118
7.1 Public-to-Private		118
7.2 Material Shareholding Thresholds and Disclosure in Tender Offers		119
7.3 Mandatory Offer Thresholds		119
7.4 Consideration		119
7.5 Conditions in Takeovers		120
7.6 Acquiring Less Than 100%		120
7.7 Irrevocable Commitments		120
8. Management Incentives		120
8.1 Equity Incentivisation and Ownership		120
8.2 Management Participation		121
8.3 Vesting/Leaver Provisions		121
8.4 Restrictions on Manager Shareholders		121
8.5 Minority Protection for Manager Shareholders		121
9. Portfolio Company Oversight		121
9.1 Shareholder Control and Information Rights		121
9.2 Shareholder Liability		121
10. Exits		121
10.1 Types of Exit		121
10.2 Drag and Tag Rights		121
10.3 IPO		122
Trends and Developments		123
Contributed by Global Law Office		123
CONGO BRAZZAVILLE		131
Law and Practice		131
Contributed by Cabinet Gomes		131
1. Transaction Activity		134
1.1 Private Equity Transactions and M&A Deals in General		134
1.2 Market Activity and Impact of Macro-Economic Factors		134
2. Private Equity Developments		134
2.1 Impact of Legal Developments on Funds and Transactions		134
3. Regulatory Framework		134
3.1 Primary Regulators and Regulatory Issues		134
4. Due Diligence		136
4.1 General Information		136
4.2 Vendor Due Diligence		137
5. Structure of Transactions		137
5.1 Structure of the Acquisition		137
5.2 Structure of the Buyer		137
5.3 Funding Structure of Private Equity Transactions		137
5.4 Multiple Investors		137
6. Terms of Acquisition Documentation		137
6.1 Types of Consideration Mechanism		137
6.2 Locked-Box Consideration Structures		138
6.3 Dispute Resolution for Consideration Structures		138
6.4 Conditionality in Acquisition Documentation		138
6.5 “Hell or High Water” Undertakings		138
6.6 Break Fees		138
6.7 Termination Rights in Acquisition Documentation		138
6.8 Allocation of Risk		138
6.9 Warranty and Indemnity Protection		138
6.10 Other Protections in Acquisition Documentation		139
6.11 Commonly Litigated Provisions		139
7. Takeovers		139
7.1 Public-to-Private		139
7.2 Material Shareholding Thresholds and Disclosure in Tender Offers		139
7.3 Mandatory Offer Thresholds		139
7.4 Consideration		139
7.5 Conditions in Takeovers		139
7.6 Acquiring Less Than 100%		140
7.7 Irrevocable Commitments		140
8. Management Incentives		140
8.1 Equity Incentivisation and Ownership		140
8.2 Management Participation		140
8.3 Vesting/Leaver Provisions		140
8.4 Restrictions on Manager Shareholders		140
8.5 Minority Protection for Manager Shareholders		140
9. Portfolio Company Oversight		140
9.1 Shareholder Control and Information Rights		140
9.2 Shareholder Liability		141
10. Exits		141
10.1 Types of Exit		141
10.2 Drag and Tag Rights		141
10.3 IPO		141
DENMARK		142
Law and Practice		142
Contributed by Moalem Weitemeyer		142
1. Transaction Activity		145
1.1 Private Equity Transactions and M&A Deals in General		145
1.2 Market Activity and Impact of Macro-Economic Factors		145
2. Private Equity Developments		146
2.1 Impact of Legal Developments on Funds and Transactions		146
3. Regulatory Framework		146
3.1 Primary Regulators and Regulatory Issues		146
4. Due Diligence		147
4.1 General Information		147
4.2 Vendor Due Diligence		148
5. Structure of Transactions		148
5.1 Structure of the Acquisition		148
5.2 Structure of the Buyer		148
5.3 Funding Structure of Private Equity Transactions		149
5.4 Multiple Investors		149
6. Terms of Acquisition Documentation		149
6.1 Types of Consideration Mechanism		149
6.2 Locked-Box Consideration Structures		150
6.3 Dispute Resolution for Consideration Structures		150
6.4 Conditionality in Acquisition Documentation		151
6.5 “Hell or High Water” Undertakings		151
6.6 Break Fees		151
6.7 Termination Rights in Acquisition Documentation		152
6.8 Allocation of Risk		152
6.9 Warranty and Indemnity Protection		152
6.10 Other Protections in Acquisition Documentation		153
6.11 Commonly Litigated Provisions		154
7. Takeovers		154
7.1 Public-to-Private		154
7.2 Material Shareholding Thresholds and Disclosure in Tender Offers		154
7.3 Mandatory Offer Thresholds		155
7.4 Consideration		155
7.5 Conditions in Takeovers		155
7.6 Acquiring Less Than 100%		156
7.7 Irrevocable Commitments		156
8. Management Incentives		156
8.1 Equity Incentivisation and Ownership		156
8.2 Management Participation		156
8.3 Vesting/Leaver Provisions		157
8.4 Restrictions on Manager Shareholders		157
8.5 Minority Protection for Manager Shareholders		157
9. Portfolio Company Oversight		158
9.1 Shareholder Control and Information Rights		158
9.2 Shareholder Liability		158
10. Exits		159
10.1 Types of Exit		159
10.2 Drag and Tag Rights		159
10.3 IPO		159
Trends and Developments		161
Contributed by Moalem Weitemeyer		161
FINLAND		166
Law and Practice		166
Contributed by Waselius		166
1. Transaction Activity		169
1.1 Private Equity Transactions and M&A Deals in General		169
1.2 Market Activity and Impact of Macro-Economic Factors		169
2. Private Equity Developments		170
2.1 Impact of Legal Developments on Funds and Transactions		170
3. Regulatory Framework		170
3.1 Primary Regulators and Regulatory Issues		170
4. Due Diligence		172
4.1 General Information		172
4.2 Vendor Due Diligence		172
5. Structure of Transactions		173
5.1 Structure of the Acquisition		173
5.2 Structure of the Buyer		173
5.3 Funding Structure of Private Equity Transactions		173
5.4 Multiple Investors		173
6. Terms of Acquisition Documentation		173
6.1 Types of Consideration Mechanism		173
6.2 Locked-Box Consideration Structures		174
6.3 Dispute Resolution for Consideration Structures		174
6.4 Conditionality in Acquisition Documentation		174
6.5 “Hell or High Water” Undertakings		174
6.6 Break Fees		175
6.7 Termination Rights in Acquisition Documentation		175
6.8 Allocation of Risk		175
6.9 Warranty and Indemnity Protection		175
6.10 Other Protections in Acquisition Documentation		176
6.11 Commonly Litigated Provisions		176
7. Takeovers		177
7.1 Public-to-Private		177
7.2 Material Shareholding Thresholds and Disclosure in Tender Offers		177
7.3 Mandatory Offer Thresholds		178
7.4 Consideration		178
7.5 Conditions in Takeovers		178
7.6 Acquiring Less Than 100%		179
7.7 Irrevocable Commitments		179
8. Management Incentives		179
8.1 Equity Incentivisation and Ownership		179
8.2 Management Participation		179
8.3 Vesting/Leaver Provisions		179
8.4 Restrictions on Manager Shareholders		180
8.5 Minority Protection for Manager Shareholders		180
9. Portfolio Company Oversight		181
9.1 Shareholder Control and Information Rights		181
9.2 Shareholder Liability		181
10. Exits		181
10.1 Types of Exit		181
10.2 Drag and Tag Rights		181
10.3 IPO		181
FRANCE		182
Law and Practice		182
Contributed by C-Level Partners		182
1. Transaction Activity		185
1.1 Private Equity Transactions and M&A Deals in General		185
1.2 Market Activity and Impact of Macro-Economic Factors		185
2. Private Equity Developments		186
2.1 Impact of Legal Developments on Funds and Transactions		186
3. Regulatory Framework		186
3.1 Primary Regulators and Regulatory Issues		186
4. Due Diligence		187
4.1 General Information		187
4.2 Vendor Due Diligence		188
5. Structure of Transactions		188
5.1 Structure of the Acquisition		188
5.2 Structure of the Buyer		188
5.3 Funding Structure of Private Equity Transactions		188
5.4 Multiple Investors		189
6. Terms of Acquisition Documentation		189
6.1 Types of Consideration Mechanism		189
6.2 Locked-Box Consideration Structures		189
6.3 Dispute Resolution for Consideration Structures		189
6.4 Conditionality in Acquisition Documentation		189
6.5 “Hell or High Water” Undertakings		190
6.6 Break Fees		190
6.7 Termination Rights in Acquisition Documentation		190
6.8 Allocation of Risk		190
6.9 Warranty and Indemnity Protection		191
6.10 Other Protections in Acquisition Documentation		191
6.11 Commonly Litigated Provisions		191
7. Takeovers		191
7.1 Public-to-Private		191
7.2 Material Shareholding Thresholds and Disclosure in Tender Offers		191
7.3 Mandatory Offer Thresholds		192
7.4 Consideration		192
7.5 Conditions in Takeovers		192
7.6 Acquiring Less Than 100%		192
7.7 Irrevocable Commitments		192
8. Management Incentives		193
8.1 Equity Incentivisation and Ownership		193
8.2 Management Participation		193
8.3 Vesting/Leaver Provisions		194
8.4 Restrictions on Manager Shareholders		194
8.5 Minority Protection for Manager Shareholders		194
9. Portfolio Company Oversight		195
9.1 Shareholder Control and Information Rights		195
9.2 Shareholder Liability		195
10. Exits		196
10.1 Types of Exit		196
10.2 Drag and Tag Rights		196
10.3 IPO		196
Trends and Developments		197
Contributed by Sullivan & Cromwell LLP		197
GERMANY		202
Law and Practice		202
Contributed by Willkie Farr & Gallagher LLP		202
1. Transaction Activity		205
1.1 Private Equity Transactions and M&A Deals in General		205
1.2 Market Activity and Impact of Macro-Economic Factors		205
2. Private Equity Developments		206
2.1 Impact of Legal Developments on Funds and Transactions		206
3. Regulatory Framework		207
3.1 Primary Regulators and Regulatory Issues		207
4. Due Diligence		208
4.1 General Information		208
4.2 Vendor Due Diligence		208
5. Structure of Transactions		208
5.1 Structure of the Acquisition		208
5.2 Structure of the Buyer		209
5.3 Funding Structure of Private Equity Transactions		209
5.4 Multiple Investors		209
6. Terms of Acquisition Documentation		210
6.1 Types of Consideration Mechanism		210
6.2 Locked-Box Consideration Structures		210
6.3 Dispute Resolution for Consideration Structures		210
6.4 Conditionality in Acquisition Documentation		210
6.5 “Hell or High Water” Undertakings		211
6.6 Break Fees		211
6.7 Termination Rights in Acquisition Documentation		211
6.8 Allocation of Risk		211
6.9 Warranty and Indemnity Protection		211
6.10 Other Protections in Acquisition Documentation		212
6.11 Commonly Litigated Provisions		212
7. Takeovers		212
7.1 Public-to-Private		212
7.2 Material Shareholding Thresholds and Disclosure in Tender Offers		212
7.3 Mandatory Offer Thresholds		213
7.4 Consideration		213
7.5 Conditions in Takeovers		213
7.6 Acquiring Less Than 100%		214
7.7 Irrevocable Commitments		214
8. Management Incentives		215
8.1 Equity Incentivisation and Ownership		215
8.2 Management Participation		215
8.3 Vesting/Leaver Provisions		215
8.4 Restrictions on Manager Shareholders		216
8.5 Minority Protection for Manager Shareholders		216
9. Portfolio Company Oversight		216
9.1 Shareholder Control and Information Rights		216
9.2 Shareholder Liability		217
10. Exits		217
10.1 Types of Exit		217
10.2 Drag and Tag Rights		217
10.3 IPO		218
Trends and Developments		219
Contributed by Willkie Farr & Gallagher LLP		219
GREECE		225
Law and Practice		225
Contributed by Kyriakides Georgopoulos Law Firm		225
1. Transaction Activity		228
1.1 Private Equity Transactions and M&A Deals in General		228
1.2 Market Activity and Impact of Macro-Economic Factors		228
2. Private Equity Developments		229
2.1 Impact of Legal Developments on Funds and Transactions		229
3. Regulatory Framework		229
3.1 Primary Regulators and Regulatory Issues		229
4. Due Diligence		230
4.1 General Information		230
4.2 Vendor Due Diligence		230
5. Structure of Transactions		231
5.1 Structure of the Acquisition		231
5.2 Structure of the Buyer		231
5.3 Funding Structure of Private Equity Transactions		231
5.4 Multiple Investors		232
6. Terms of Acquisition Documentation		232
6.1 Types of Consideration Mechanism		232
6.2 Locked-Box Consideration Structures		232
6.3 Dispute Resolution for Consideration Structures		233
6.4 Conditionality in Acquisition Documentation		233
6.5 “Hell or High Water” Undertakings		233
6.6 Break Fees		234
6.7 Termination Rights in Acquisition Documentation		234
6.8 Allocation of Risk		234
6.9 Warranty and Indemnity Protection		235
6.10 Other Protections in Acquisition Documentation		235
6.11 Commonly Litigated Provisions		235
7. Takeovers		236
7.1 Public-to-Private		236
7.2 Material Shareholding Thresholds and Disclosure in Tender Offers		236
7.3 Mandatory Offer Thresholds		236
7.4 Consideration		237
7.5 Conditions in Takeovers		237
7.6 Acquiring Less Than 100%		237
7.7 Irrevocable Commitments		238
8. Management Incentives		238
8.1 Equity Incentivisation and Ownership		238
8.2 Management Participation		238
8.3 Vesting/Leaver Provisions		239
8.4 Restrictions on Manager Shareholders		239
8.5 Minority Protection for Manager Shareholders		240
9. Portfolio Company Oversight		240
9.1 Shareholder Control and Information Rights		240
9.2 Shareholder Liability		240
10. Exits		241
10.1 Types of Exit		241
10.2 Drag and Tag Rights		241
10.3 IPO		241
Trends and Developments		243
Contributed by Kyriakides Georgopoulos Law Firm		243
INDIA		249
Trends and Developments		249
Contributed by JSA		249
IRELAND		255
Law and Practice		255
Contributed by Matheson LLP		255
1. Transaction Activity		258
1.1 Private Equity Transactions and M&A Deals in General		258
1.2 Market Activity and Impact of Macro-Economic Factors		259
2. Private Equity Developments		259
2.1 Impact of Legal Developments on Funds and Transactions		259
3. Regulatory Framework		260
3.1 Primary Regulators and Regulatory Issues		260
4. Due Diligence		261
4.1 General Information		261
4.2 Vendor Due Diligence		261
5. Structure of Transactions		262
5.1 Structure of the Acquisition		262
5.2 Structure of the Buyer		262
5.3 Funding Structure of Private Equity Transactions		262
5.4 Multiple Investors		263
6. Terms of Acquisition Documentation		263
6.1 Types of Consideration Mechanism		263
6.2 Locked-Box Consideration Structures		263
6.3 Dispute Resolution for Consideration Structures		264
6.4 Conditionality in Acquisition Documentation		264
6.5 “Hell or High Water” Undertakings		264
6.6 Break Fees		265
6.7 Termination Rights in Acquisition Documentation		265
6.8 Allocation of Risk		265
6.9 Warranty and Indemnity Protection		265
6.10 Other Protections in Acquisition Documentation		266
6.11 Commonly Litigated Provisions		266
7. Takeovers		266
7.1 Public-to-Private		266
7.2 Material Shareholding Thresholds and Disclosure in Tender Offers		267
7.3 Mandatory Offer Thresholds		268
7.4 Consideration		269
7.5 Conditions in Takeovers		269
7.6 Acquiring Less Than 100%		269
7.7 Irrevocable Commitments		270
8. Management Incentives		270
8.1 Equity Incentivisation and Ownership		270
8.2 Management Participation		270
8.3 Vesting/Leaver Provisions		271
8.4 Restrictions on Manager Shareholders		271
8.5 Minority Protection for Manager Shareholders		271
9. Portfolio Company Oversight		272
9.1 Shareholder Control and Information Rights		272
9.2 Shareholder Liability		272
10. Exits		272
10.1 Types of Exit		272
10.2 Drag and Tag Rights		272
10.3 IPO		273
Trends and Developments		274
Contributed by Matheson LLP		274
ITALY		279
Law and Practice		279
Contributed by Alma LED		279
1. Transaction Activity		282
1.1 Private Equity Transactions and M&A Deals in General		282
1.2 Market Activity and Impact of Macro-Economic Factors		282
2. Private Equity Developments		283
2.1 Impact of Legal Developments on Funds and Transactions		283
3. Regulatory Framework		283
3.1 Primary Regulators and Regulatory Issues		283
4. Due Diligence		284
4.1 General Information		284
4.2 Vendor Due Diligence		284
5. Structure of Transactions		284
5.1 Structure of the Acquisition		284
5.2 Structure of the Buyer		284
5.3 Funding Structure of Private Equity Transactions		285
5.4 Multiple Investors		285
6. Terms of Acquisition Documentation		286
6.1 Types of Consideration Mechanism		286
6.2 Locked-Box Consideration Structures		286
6.3 Dispute Resolution for Consideration Structures		286
6.4 Conditionality in Acquisition Documentation		286
6.5 “Hell or High Water” Undertakings		287
6.6 Break Fees		287
6.7 Termination Rights in Acquisition Documentation		287
6.8 Allocation of Risk		287
6.9 Warranty and Indemnity Protection		287
6.10 Other Protections in Acquisition Documentation		288
6.11 Commonly Litigated Provisions		288
7. Takeovers		289
7.1 Public-to-Private		289
7.2 Material Shareholding Thresholds and Disclosure in Tender Offers		289
7.3 Mandatory Offer Thresholds		289
7.4 Consideration		290
7.5 Conditions in Takeovers		290
7.6 Acquiring Less Than 100%		291
7.7 Irrevocable Commitments		291
8. Management Incentives		292
8.1 Equity Incentivisation and Ownership		292
8.2 Management Participation		292
8.3 Vesting/Leaver Provisions		292
8.4 Restrictions on Manager Shareholders		293
8.5 Minority Protection for Manager Shareholders		293
9. Portfolio Company Oversight		293
9.1 Shareholder Control and Information Rights		293
9.2 Shareholder Liability		294
10. Exits		294
10.1 Types of Exit		294
10.2 Drag and Tag Rights		295
10.3 IPO		295
Trends and Developments		296
Contributed by Alma LED		296
JAPAN		303
Law and Practice		303
Contributed by Mori Hamada & Matsumoto		303
1. Transaction Activity		306
1.1 Private Equity Transactions and M&A Deals in General		306
1.2 Market Activity and Impact of Macro-Economic Factors		306
2. Private Equity Developments		307
2.1 Impact of Legal Developments on Funds and Transactions		307
3. Regulatory Framework		310
3.1 Primary Regulators and Regulatory Issues		310
4. Due Diligence		311
4.1 General Information		311
4.2 Vendor Due Diligence		312
5. Structure of Transactions		312
5.1 Structure of the Acquisition		312
5.2 Structure of the Buyer		312
5.3 Funding Structure of Private Equity Transactions		313
5.4 Multiple Investors		313
6. Terms of Acquisition Documentation		313
6.1 Types of Consideration Mechanism		313
6.2 Locked-Box Consideration Structures		314
6.3 Dispute Resolution for Consideration Structures		314
6.4 Conditionality in Acquisition Documentation		314
6.5 “Hell or High Water” Undertakings		314
6.6 Break Fees		314
6.7 Termination Rights in Acquisition Documentation		315
6.8 Allocation of Risk		315
6.9 Warranty and Indemnity Protection		315
6.10 Other Protections in Acquisition Documentation		316
6.11 Commonly Litigated Provisions		316
7. Takeovers		316
7.1 Public-to-Private		316
7.2 Material Shareholding Thresholds and Disclosure in Tender Offers		317
7.3 Mandatory Offer Thresholds		317
7.4 Consideration		317
7.5 Conditions in Takeovers		318
7.6 Acquiring Less Than 100%		318
7.7 Irrevocable Commitments		319
8. Management Incentives		319
8.1 Equity Incentivisation and Ownership		319
8.2 Management Participation		319
8.3 Vesting/Leaver Provisions		319
8.4 Restrictions on Manager Shareholders		319
8.5 Minority Protection for Manager Shareholders		320
9. Portfolio Company Oversight		320
9.1 Shareholder Control and Information Rights		320
9.2 Shareholder Liability		320
10. Exits		320
10.1 Types of Exit		320
10.2 Drag and Tag Rights		321
10.3 IPO		321
Trends and Developments		322
Contributed by Nagashima Ohno & Tsunematsu		322
JERSEY		326
Law and Practice		326
Contributed by Maples Group		326
1. Transaction Activity		329
1.1 Private Equity Transactions and M&A Deals in General		329
1.2 Market Activity and Impact of Macro-Economic Factors		329
2. Private Equity Developments		330
2.1 Impact of Legal Developments on Funds and Transactions		330
3. Regulatory Framework		330
3.1 Primary Regulators and Regulatory Issues		330
4. Due Diligence		331
4.1 General Information		331
4.2 Vendor Due Diligence		331
5. Structure of Transactions		332
5.1 Structure of the Acquisition		332
5.2 Structure of the Buyer		332
5.3 Funding Structure of Private Equity Transactions		332
5.4 Multiple Investors		333
6. Terms of Acquisition Documentation		333
6.1 Types of Consideration Mechanism		333
6.2 Locked-Box Consideration Structures		333
6.3 Dispute Resolution for Consideration Structures		333
6.4 Conditionality in Acquisition Documentation		333
6.5 “Hell or High Water” Undertakings		334
6.6 Break Fees		334
6.7 Termination Rights in Acquisition Documentation		334
6.8 Allocation of Risk		334
6.9 Warranty and Indemnity Protection		335
6.10 Other Protections in Acquisition Documentation		335
6.11 Commonly Litigated Provisions		335
7. Takeovers		335
7.1 Public-to-Private		335
7.2 Material Shareholding Thresholds and Disclosure in Tender Offers		336
7.3 Mandatory Offer Thresholds		336
7.4 Consideration		336
7.5 Conditions in Takeovers		336
7.6 Acquiring Less Than 100%		337
7.7 Irrevocable Commitments		337
8. Management Incentives		337
8.1 Equity Incentivisation and Ownership		337
8.2 Management Participation		337
8.3 Vesting/Leaver Provisions		338
8.4 Restrictions on Manager Shareholders		338
8.5 Minority Protection for Manager Shareholders		338
9. Portfolio Company Oversight		338
9.1 Shareholder Control and Information Rights		338
9.2 Shareholder Liability		339
10. Exits		339
10.1 Types of Exit		339
10.2 Drag and Tag Rights		340
10.3 IPO		340
Trends and Developments		341
Contributed by Carey Olsen Jersey LLP		341
KENYA		345
Law and Practice		345
Contributed by Cliffe Dekker Hofmeyr		345
1. Transaction Activity		348
1.1 Private Equity Transactions and M&A Deals in General		348
1.2 Market Activity and Impact of Macro-Economic Factors		348
2. Private Equity Developments		349
2.1 Impact of Legal Developments on Funds and Transactions		349
3. Regulatory Framework		352
3.1 Primary Regulators and Regulatory Issues		352
4. Due Diligence		355
4.1 General Information		355
4.2 Vendor Due Diligence		355
5. Structure of Transactions		356
5.1 Structure of the Acquisition		356
5.2 Structure of the Buyer		356
5.3 Funding Structure of Private Equity Transactions		356
5.4 Multiple Investors		356
6. Terms of Acquisition Documentation		356
6.1 Types of Consideration Mechanism		356
6.2 Locked-Box Consideration Structures		357
6.3 Dispute Resolution for Consideration Structures		357
6.4 Conditionality in Acquisition Documentation		357
6.5 “Hell or High Water” Undertakings		358
6.6 Break Fees		358
6.7 Termination Rights in Acquisition Documentation		358
6.8 Allocation of Risk		358
6.9 Warranty and Indemnity Protection		358
6.10 Other Protections in Acquisition Documentation		359
6.11 Commonly Litigated Provisions		359
7. Takeovers		359
7.1 Public-to-Private		359
7.2 Material Shareholding Thresholds and Disclosure in Tender Offers		359
7.3 Mandatory Offer Thresholds		360
7.4 Consideration		360
7.5 Conditions in Takeovers		360
7.6 Acquiring Less Than 100%		361
7.7 Irrevocable Commitments		361
8. Management Incentives		361
8.1 Equity Incentivisation and Ownership		361
8.2 Management Participation		361
8.3 Vesting/Leaver Provisions		361
8.4 Restrictions on Manager Shareholders		362
8.5 Minority Protection for Manager Shareholders		362
9. Portfolio Company Oversight		362
9.1 Shareholder Control and Information Rights		362
9.2 Shareholder Liability		362
10. Exits		363
10.1 Types of Exit		363
10.2 Drag and Tag Rights		363
10.3 IPO		363
LUXEMBOURG		364
Law and Practice		364
Contributed by Maples Group		364
1. Transaction Activity		367
1.1 Private Equity Transactions and M&A Deals in General		367
1.2 Market Activity and Impact of Macro-Economic Factors		367
2. Private Equity Developments		367
2.1 Impact of Legal Developments on Funds and Transactions		367
3. Regulatory Framework		368
3.1 Primary Regulators and Regulatory Issues		368
4. Due Diligence		369
4.1 General Information		369
4.2 Vendor Due Diligence		369
5. Structure of Transactions		369
5.1 Structure of the Acquisition		369
5.2 Structure of the Buyer		370
5.3 Funding Structure of Private Equity Transactions		370
5.4 Multiple Investors		370
6. Terms of Acquisition Documentation		370
6.1 Types of Consideration Mechanism		370
6.2 Locked-Box Consideration Structures		370
6.3 Dispute Resolution for Consideration Structures		371
6.4 Conditionality in Acquisition Documentation		371
6.5 “Hell or High Water” Undertakings		371
6.6 Break Fees		371
6.7 Termination Rights in Acquisition Documentation		371
6.8 Allocation of Risk		371
6.9 Warranty and Indemnity Protection		372
6.10 Other Protections in Acquisition Documentation		372
6.11 Commonly Litigated Provisions		372
7. Takeovers		372
7.1 Public-to-Private		372
7.2 Material Shareholding Thresholds and Disclosure in Tender Offers		373
7.3 Mandatory Offer Thresholds		373
7.4 Consideration		373
7.5 Conditions in Takeovers		373
7.6 Acquiring Less Than 100%		373
7.7 Irrevocable Commitments		374
8. Management Incentives		374
8.1 Equity Incentivisation and Ownership		374
8.2 Management Participation		374
8.3 Vesting/Leaver Provisions		374
8.4 Restrictions on Manager Shareholders		374
8.5 Minority Protection for Manager Shareholders		375
9. Portfolio Company Oversight		375
9.1 Shareholder Control and Information Rights		375
9.2 Shareholder Liability		375
10. Exits		375
10.1 Types of Exit		375
10.2 Drag and Tag Rights		376
10.3 IPO		376
Trends and Developments		377
Contributed by GSK Stockmann SA		377
MALAYSIA		383
Law and Practice		383
Contributed by Wong & Partners		383
1. Transaction Activity		386
1.1 Private Equity Transactions and M&A Deals in General		386
1.2 Market Activity and Impact of Macro-Economic Factors		388
2. Private Equity Developments		389
2.1 Impact of Legal Developments on Funds and Transactions		389
3. Regulatory Framework		390
3.1 Primary Regulators and Regulatory Issues		390
4. Due Diligence		391
4.1 General Information		391
4.2 Vendor Due Diligence		391
5. Structure of Transactions		391
5.1 Structure of the Acquisition		391
5.2 Structure of the Buyer		392
5.3 Funding Structure of Private Equity Transactions		392
5.4 Multiple Investors		392
6. Terms of Acquisition Documentation		392
6.1 Types of Consideration Mechanism		392
6.2 Locked-Box Consideration Structures		392
6.3 Dispute Resolution for Consideration Structures		392
6.4 Conditionality in Acquisition Documentation		393
6.5 “Hell or High Water” Undertakings		393
6.6 Break Fees		393
6.7 Termination Rights in Acquisition Documentation		393
6.8 Allocation of Risk		394
6.9 Warranty and Indemnity Protection		394
6.10 Other Protections in Acquisition Documentation		394
6.11 Commonly Litigated Provisions		394
7. Takeovers		395
7.1 Public-to-Private		395
7.2 Material Shareholding Thresholds and Disclosure in Tender Offers		395
7.3 Mandatory Offer Thresholds		395
7.4 Consideration		395
7.5 Conditions in Takeovers		395
7.6 Acquiring Less Than 100%		396
7.7 Irrevocable Commitments		396
8. Management Incentives		396
8.1 Equity Incentivisation and Ownership		396
8.2 Management Participation		396
8.3 Vesting/Leaver Provisions		396
8.4 Restrictions on Manager Shareholders		397
8.5 Minority Protection for Manager Shareholders		397
9. Portfolio Company Oversight		397
9.1 Shareholder Control and Information Rights		397
9.2 Shareholder Liability		397
10. Exits		398
10.1 Types of Exit		398
10.2 Drag and Tag Rights		398
10.3 IPO		398
Trends and Developments		399
Contributed by Wong & Partners		399
MEXICO		404
Law and Practice		404
Contributed by Ritch Mueller		404
1. Transaction Activity		407
1.1 Private Equity Transactions and M&A Deals in General		407
1.2 Market Activity and Impact of Macro-Economic Factors		407
2. Private Equity Developments		408
2.1 Impact of Legal Developments on Funds and Transactions		408
3. Regulatory Framework		409
3.1 Primary Regulators and Regulatory Issues		409
4. Due Diligence		410
4.1 General Information		410
4.2 Vendor Due Diligence		410
5. Structure of Transactions		411
5.1 Structure of the Acquisition		411
5.2 Structure of the Buyer		411
5.3 Funding Structure of Private Equity Transactions		412
5.4 Multiple Investors		412
6. Terms of Acquisition Documentation		412
6.1 Types of Consideration Mechanism		412
6.2 Locked-Box Consideration Structures		413
6.3 Dispute Resolution for Consideration Structures		413
6.4 Conditionality in Acquisition Documentation		413
6.5 “Hell or High Water” Undertakings		414
6.6 Break Fees		414
6.7 Termination Rights in Acquisition Documentation		414
6.8 Allocation of Risk		414
6.9 Warranty and Indemnity Protection		415
6.10 Other Protections in Acquisition Documentation		415
6.11 Commonly Litigated Provisions		415
7. Takeovers		415
7.1 Public-to-Private		415
7.2 Material Shareholding Thresholds and Disclosure in Tender Offers		415
7.3 Mandatory Offer Thresholds		415
7.4 Consideration		415
7.5 Conditions in Takeovers		416
7.6 Acquiring Less Than 100%		416
7.7 Irrevocable Commitments		416
8. Management Incentives		416
8.1 Equity Incentivisation and Ownership		416
8.2 Management Participation		416
8.3 Vesting/Leaver Provisions		416
8.4 Restrictions on Manager Shareholders		416
8.5 Minority Protection for Manager Shareholders		417
9. Portfolio Company Oversight		417
9.1 Shareholder Control and Information Rights		417
9.2 Shareholder Liability		417
10. Exits		417
10.1 Types of Exit		417
10.2 Drag and Tag Rights		417
10.3 IPO		417
Trends and Developments		418
Contributed by Ritch Mueller		418
NETHERLANDS		424
Law and Practice		424
Contributed by Greenberg Traurig, LLP		424
1. Transaction Activity		427
1.1 Private Equity Transactions and M&A Deals in General		427
1.2 Market Activity and Impact of Macro-Economic Factors		427
2. Private Equity Developments		428
2.1 Impact of Legal Developments on Funds and Transactions		428
3. Regulatory Framework		428
3.1 Primary Regulators and Regulatory Issues		428
4. Due Diligence		429
4.1 General Information		429
4.2 Vendor Due Diligence		430
5. Structure of Transactions		430
5.1 Structure of the Acquisition		430
5.2 Structure of the Buyer		430
5.3 Funding Structure of Private Equity Transactions		430
5.4 Multiple Investors		431
6. Terms of Acquisition Documentation		431
6.1 Types of Consideration Mechanism		431
6.2 Locked-Box Consideration Structures		431
6.3 Dispute Resolution for Consideration Structures		431
6.4 Conditionality in Acquisition Documentation		431
6.5 “Hell or High Water” Undertakings		432
6.6 Break Fees		432
6.7 Termination Rights in Acquisition Documentation		432
6.8 Allocation of Risk		432
6.9 Warranty and Indemnity Protection		432
6.10 Other Protections in Acquisition Documentation		433
6.11 Commonly Litigated Provisions		433
7. Takeovers		433
7.1 Public-to-Private		433
7.2 Material Shareholding Thresholds and Disclosure in Tender Offers		434
7.3 Mandatory Offer Thresholds		434
7.4 Consideration		434
7.5 Conditions in Takeovers		434
7.6 Acquiring Less Than 100%		434
7.7 Irrevocable Commitments		435
8. Management Incentives		435
8.1 Equity Incentivisation and Ownership		435
8.2 Management Participation		435
8.3 Vesting/Leaver Provisions		435
8.4 Restrictions on Manager Shareholders		436
8.5 Minority Protection for Manager Shareholders		436
9. Portfolio Company Oversight		436
9.1 Shareholder Control and Information Rights		436
9.2 Shareholder Liability		436
10. Exits		436
10.1 Types of Exit		436
10.2 Drag and Tag Rights		437
10.3 IPO		437
Trends and Developments		438
Contributed by Greenberg Traurig, LLP		438
NEW ZEALAND		444
Law and Practice		444
Contributed by Russell McVeagh		444
1. Transaction Activity		447
1.1 Private Equity Transactions and M&A Deals in General		447
1.2 Market Activity and Impact of Macro-Economic Factors		447
2. Private Equity Developments		448
2.1 Impact of Legal Developments on Funds and Transactions		448
3. Regulatory Framework		448
3.1 Primary Regulators and Regulatory Issues		448
4. Due Diligence		451
4.1 General Information		451
4.2 Vendor Due Diligence		452
5. Structure of Transactions		452
5.1 Structure of the Acquisition		452
5.2 Structure of the Buyer		453
5.3 Funding Structure of Private Equity Transactions		453
5.4 Multiple Investors		454
6. Terms of Acquisition Documentation		454
6.1 Types of Consideration Mechanism		454
6.2 Locked-Box Consideration Structures		454
6.3 Dispute Resolution for Consideration Structures		455
6.4 Conditionality in Acquisition Documentation		455
6.5 “Hell or High Water” Undertakings		455
6.6 Break Fees		456
6.7 Termination Rights in Acquisition Documentation		456
6.8 Allocation of Risk		457
6.9 Warranty and Indemnity Protection		457
6.10 Other Protections in Acquisition Documentation		458
6.11 Commonly Litigated Provisions		458
7. Takeovers		458
7.1 Public-to-Private		458
7.2 Material Shareholding Thresholds and Disclosure in Tender Offers		459
7.3 Mandatory Offer Thresholds		459
7.4 Consideration		459
7.5 Conditions in Takeovers		459
7.6 Acquiring Less Than 100%		459
7.7 Irrevocable Commitments		459
8. Management Incentives		460
8.1 Equity Incentivisation and Ownership		460
8.2 Management Participation		460
8.3 Vesting/Leaver Provisions		460
8.4 Restrictions on Manager Shareholders		460
8.5 Minority Protection for Manager Shareholders		460
9. Portfolio Company Oversight		460
9.1 Shareholder Control and Information Rights		460
9.2 Shareholder Liability		461
10. Exits		461
10.1 Types of Exit		461
10.2 Drag and Tag Rights		461
10.3 IPO		462
NORWAY		463
Law and Practice		463
Contributed by Wikborg Rein Advokatfirma AS		463
1. Transaction Activity		466
1.1 Private Equity Transactions and M&A Deals in General		466
1.2 Market Activity and Impact of Macro-Economic Factors		467
2. Private Equity Developments		467
2.1 Impact of Legal Developments on Funds and Transactions		467
3. Regulatory Framework		469
3.1 Primary Regulators and Regulatory Issues		469
4. Due Diligence		471
4.1 General Information		471
4.2 Vendor Due Diligence		472
5. Structure of Transactions		472
5.1 Structure of the Acquisition		472
5.2 Structure of the Buyer		472
5.3 Funding Structure of Private Equity Transactions		473
5.4 Multiple Investors		474
6. Terms of Acquisition Documentation		474
6.1 Types of Consideration Mechanism		474
6.2 Locked-Box Consideration Structures		474
6.3 Dispute Resolution for Consideration Structures		474
6.4 Conditionality in Acquisition Documentation		474
6.5 “Hell or High Water” Undertakings		475
6.6 Break Fees		475
6.7 Termination Rights in Acquisition Documentation		475
6.8 Allocation of Risk		475
6.9 Warranty and Indemnity Protection		475
6.10 Other Protections in Acquisition Documentation		476
6.11 Commonly Litigated Provisions		476
7. Takeovers		476
7.1 Public-to-Private		476
7.2 Material Shareholding Thresholds and Disclosure in Tender Offers		477
7.3 Mandatory Offer Thresholds		477
7.4 Consideration		477
7.5 Conditions in Takeovers		477
7.6 Acquiring Less Than 100%		478
7.7 Irrevocable Commitments		478
8. Management Incentives		478
8.1 Equity Incentivisation and Ownership		478
8.2 Management Participation		479
8.3 Vesting/Leaver Provisions		479
8.4 Restrictions on Manager Shareholders		479
8.5 Minority Protection for Manager Shareholders		480
9. Portfolio Company Oversight		480
9.1 Shareholder Control and Information Rights		480
9.2 Shareholder Liability		480
10. Exits		480
10.1 Types of Exit		480
10.2 Drag and Tag Rights		481
10.3 IPO		481
Trends and Developments		482
Contributed by BAHR		482
PORTUGAL		487
Law and Practice		487
Contributed by Morais Leitão, Galvão Teles, Soares da Silva & Associados		487
1. Transaction Activity		490
1.1 Private Equity Transactions and M&A Deals in General		490
1.2 Market Activity and Impact of Macro-Economic Factors		490
2. Private Equity Developments		491
2.1 Impact of Legal Developments on Funds and Transactions		491
3. Regulatory Framework		492
3.1 Primary Regulators and Regulatory Issues		492
4. Due Diligence		493
4.1 General Information		493
4.2 Vendor Due Diligence		494
5. Structure of Transactions		494
5.1 Structure of the Acquisition		494
5.2 Structure of the Buyer		494
5.3 Funding Structure of Private Equity Transactions		494
5.4 Multiple Investors		495
6. Terms of Acquisition Documentation		495
6.1 Types of Consideration Mechanism		495
6.2 Locked-Box Consideration Structures		496
6.3 Dispute Resolution for Consideration Structures		496
6.4 Conditionality in Acquisition Documentation		496
6.5 “Hell or High Water” Undertakings		496
6.6 Break Fees		497
6.7 Termination Rights in Acquisition Documentation		497
6.8 Allocation of Risk		497
6.9 Warranty and Indemnity Protection		497
6.10 Other Protections in Acquisition Documentation		498
6.11 Commonly Litigated Provisions		498
7. Takeovers		498
7.1 Public-to-Private		498
7.2 Material Shareholding Thresholds and Disclosure in Tender Offers		498
7.3 Mandatory Offer Thresholds		499
7.4 Consideration		499
7.5 Conditions in Takeovers		499
7.6 Acquiring Less Than 100%		499
7.7 Irrevocable Commitments		500
8. Management Incentives		500
8.1 Equity Incentivisation and Ownership		500
8.2 Management Participation		500
8.3 Vesting/Leaver Provisions		500
8.4 Restrictions on Manager Shareholders		501
8.5 Minority Protection for Manager Shareholders		501
9. Portfolio Company Oversight		502
9.1 Shareholder Control and Information Rights		502
9.2 Shareholder Liability		502
10. Exits		502
10.1 Types of Exit		502
10.2 Drag and Tag Rights		502
10.3 IPO		503
Trends and Developments		504
Contributed by PLMJ		504
PUERTO RICO		509
Law and Practice		509
Contributed by Ferraiuoli LLC		509
1. Transaction Activity		512
1.1 Private Equity Transactions and M&A Deals in General		512
1.2 Market Activity and Impact of Macro-Economic Factors		512
2. Private Equity Developments		512
2.1 Impact of Legal Developments on Funds and Transactions		512
3. Regulatory Framework		514
3.1 Primary Regulators and Regulatory Issues		514
4. Due Diligence		515
4.1 General Information		515
4.2 Vendor Due Diligence		515
5. Structure of Transactions		515
5.1 Structure of the Acquisition		515
5.2 Structure of the Buyer		515
5.3 Funding Structure of Private Equity Transactions		516
5.4 Multiple Investors		517
6. Terms of Acquisition Documentation		517
6.1 Types of Consideration Mechanism		517
6.2 Locked-Box Consideration Structures		517
6.3 Dispute Resolution for Consideration Structures		517
6.4 Conditionality in Acquisition Documentation		517
6.5 “Hell or High Water” Undertakings		518
6.6 Break Fees		518
6.7 Termination Rights in Acquisition Documentation		518
6.8 Allocation of Risk		518
6.9 Warranty and Indemnity Protection		518
6.10 Other Protections in Acquisition Documentation		518
6.11 Commonly Litigated Provisions		518
7. Takeovers		518
7.1 Public-to-Private		518
7.2 Material Shareholding Thresholds and Disclosure in Tender Offers		518
7.3 Mandatory Offer Thresholds		519
7.4 Consideration		519
7.5 Conditions in Takeovers		519
7.6 Acquiring Less Than 100%		519
7.7 Irrevocable Commitments		519
8. Management Incentives		519
8.1 Equity Incentivisation and Ownership		519
8.2 Management Participation		519
8.3 Vesting/Leaver Provisions		519
8.4 Restrictions on Manager Shareholders		520
8.5 Minority Protection for Manager Shareholders		521
9. Portfolio Company Oversight		521
9.1 Shareholder Control and Information Rights		521
9.2 Shareholder Liability		521
10. Exits		521
10.1 Types of Exit		521
10.2 Drag and Tag Rights		521
10.3 IPO		521
Trends and Developments		522
Contributed by Pietrantoni Mendez & Alvarez LLC		522
ROMANIA		527
Law and Practice		527
Contributed by Wolf Theiss		527
1. Transaction Activity		530
1.1 Private Equity Transactions and M&A Deals in General		530
1.2 Market Activity and Impact of Macro-Economic Factors		531
2. Private Equity Developments		531
2.1 Impact of Legal Developments on Funds and Transactions		531
3. Regulatory Framework		532
3.1 Primary Regulators and Regulatory Issues		532
4. Due Diligence		533
4.1 General Information		533
4.2 Vendor Due Diligence		534
5. Structure of Transactions		535
5.1 Structure of the Acquisition		535
5.2 Structure of the Buyer		535
5.3 Funding Structure of Private Equity Transactions		535
5.4 Multiple Investors		535
6. Terms of Acquisition Documentation		536
6.1 Types of Consideration Mechanism		536
6.2 Locked-Box Consideration Structures		536
6.3 Dispute Resolution for Consideration Structures		537
6.4 Conditionality in Acquisition Documentation		537
6.5 “Hell or High Water” Undertakings		537
6.6 Break Fees		538
6.7 Termination Rights in Acquisition Documentation		538
6.8 Allocation of Risk		538
6.9 Warranty and Indemnity Protection		539
6.10 Other Protections in Acquisition Documentation		539
6.11 Commonly Litigated Provisions		540
7. Takeovers		540
7.1 Public-to-Private		540
7.2 Material Shareholding Thresholds and Disclosure in Tender Offers		541
7.3 Mandatory Offer Thresholds		541
7.4 Consideration		542
7.5 Conditions in Takeovers		542
7.6 Acquiring Less Than 100%		543
7.7 Irrevocable Commitments		544
8. Management Incentives		544
8.1 Equity Incentivisation and Ownership		544
8.2 Management Participation		544
8.3 Vesting/Leaver Provisions		545
8.4 Restrictions on Manager Shareholders		545
8.5 Minority Protection for Manager Shareholders		546
9. Portfolio Company Oversight		546
9.1 Shareholder Control and Information Rights		546
9.2 Shareholder Liability		547
10. Exits		547
10.1 Types of Exit		547
10.2 Drag and Tag Rights		547
10.3 IPO		548
Trends and Developments		549
Contributed by Wolf Theiss		549
SINGAPORE		556
Law and Practice		556
Contributed by Rajah & Tann Singapore LLP		556
1. Transaction Activity		560
1.1 Private Equity Transactions and M&A Deals in General		560
1.2 Market Activity and Impact of Macro-Economic Factors		560
2. Private Equity Developments		560
2.1 Impact of Legal Developments on Funds and Transactions		560
3. Regulatory Framework		562
3.1 Primary Regulators and Regulatory Issues		562
4. Due Diligence		563
4.1 General Information		563
4.2 Vendor Due Diligence		563
5. Structure of Transactions		564
5.1 Structure of the Acquisition		564
5.2 Structure of the Buyer		564
5.3 Funding Structure of Private Equity Transactions		564
5.4 Multiple Investors		565
6. Terms of Acquisition Documentation		565
6.1 Types of Consideration Mechanism		565
6.2 Locked-Box Consideration Structures		565
6.3 Dispute Resolution for Consideration Structures		565
6.4 Conditionality in Acquisition Documentation		565
6.5 “Hell or High Water” Undertakings		565
6.6 Break Fees		565
6.7 Termination Rights in Acquisition Documentation		566
6.8 Allocation of Risk		566
6.9 Warranty and Indemnity Protection		566
6.10 Other Protections in Acquisition Documentation		567
6.11 Commonly Litigated Provisions		567
7. Takeovers		567
7.1 Public-to-Private		567
7.2 Material Shareholding Thresholds and Disclosure in Tender Offers		567
7.3 Mandatory Offer Thresholds		568
7.4 Consideration		568
7.5 Conditions in Takeovers		568
7.6 Acquiring Less Than 100%		569
7.7 Irrevocable Commitments		569
8. Management Incentives		570
8.1 Equity Incentivisation and Ownership		570
8.2 Management Participation		570
8.3 Vesting/Leaver Provisions		570
8.4 Restrictions on Manager Shareholders		570
8.5 Minority Protection for Manager Shareholders		570
9. Portfolio Company Oversight		570
9.1 Shareholder Control and Information Rights		570
9.2 Shareholder Liability		571
10. Exits		571
10.1 Types of Exit		571
10.2 Drag and Tag Rights		571
10.3 IPO		571
Trends and Developments		573
Contributed by Rajah & Tann Asia Singapore LLP		573
SOUTH KOREA		581
Law and Practice		581
Contributed by Lee & Ko		581
1. Transaction Activity		584
1.1 Private Equity Transactions and M&A Deals in General		584
1.2 Market Activity and Impact of Macro-Economic Factors		584
2. Private Equity Developments		584
2.1 Impact of Legal Developments on Funds and Transactions		584
3. Regulatory Framework		585
3.1 Primary Regulators and Regulatory Issues		585
4. Due Diligence		586
4.1 General Information		586
4.2 Vendor Due Diligence		587
5. Structure of Transactions		587
5.1 Structure of the Acquisition		587
5.2 Structure of the Buyer		587
5.3 Funding Structure of Private Equity Transactions		587
5.4 Multiple Investors		587
6. Terms of Acquisition Documentation		588
6.1 Types of Consideration Mechanism		588
6.2 Locked-Box Consideration Structures		588
6.3 Dispute Resolution for Consideration Structures		588
6.4 Conditionality in Acquisition Documentation		588
6.5 “Hell or High Water” Undertakings		589
6.6 Break Fees		589
6.7 Termination Rights in Acquisition Documentation		589
6.8 Allocation of Risk		589
6.9 Warranty and Indemnity Protection		589
6.10 Other Protections in Acquisition Documentation		590
6.11 Commonly Litigated Provisions		590
7. Takeovers		590
7.1 Public-to-Private		590
7.2 Material Shareholding Thresholds and Disclosure in Tender Offers		591
7.3 Mandatory Offer Thresholds		591
7.4 Consideration		591
7.5 Conditions in Takeovers		591
7.6 Acquiring Less Than 100%		592
7.7 Irrevocable Commitments		592
8. Management Incentives		592
8.1 Equity Incentivisation and Ownership		592
8.2 Management Participation		592
8.3 Vesting/Leaver Provisions		592
8.4 Restrictions on Manager Shareholders		592
8.5 Minority Protection for Manager Shareholders		593
9. Portfolio Company Oversight		593
9.1 Shareholder Control and Information Rights		593
9.2 Shareholder Liability		593
10. Exits		594
10.1 Types of Exit		594
10.2 Drag and Tag Rights		594
10.3 IPO		594
Trends and Developments		595
Contributed by Lee & Ko		595
SPAIN		601
Law and Practice		601
Contributed by Deloitte Abogados y Asesores Tributarios, S.L.U.		601
1. Transaction Activity		604
1.1 Private Equity Transactions and M&A Deals in General		604
1.2 Market Activity and Impact of Macro-Economic Factors		605
2. Private Equity Developments		606
2.1 Impact of Legal Developments on Funds and Transactions		606
3. Regulatory Framework		606
3.1 Primary Regulators and Regulatory Issues		606
4. Due Diligence		608
4.1 General Information		608
4.2 Vendor Due Diligence		609
5. Structure of Transactions		609
5.1 Structure of the Acquisition		609
5.2 Structure of the Buyer		610
5.3 Funding Structure of Private Equity Transactions		610
5.4 Multiple Investors		611
6. Terms of Acquisition Documentation		611
6.1 Types of Consideration Mechanism		611
6.2 Locked-Box Consideration Structures		612
6.3 Dispute Resolution for Consideration Structures		612
6.4 Conditionality in Acquisition Documentation		612
6.5 “Hell or High Water” Undertakings		613
6.6 Break Fees		613
6.7 Termination Rights in Acquisition Documentation		613
6.8 Allocation of Risk		613
6.9 Warranty and Indemnity Protection		613
6.10 Other Protections in Acquisition Documentation		614
6.11 Commonly Litigated Provisions		615
7. Takeovers		615
7.1 Public-to-Private		615
7.2 Material Shareholding Thresholds and Disclosure in Tender Offers		615
7.3 Mandatory Offer Thresholds		615
7.4 Consideration		616
7.5 Conditions in Takeovers		616
7.6 Acquiring Less Than 100%		617
7.7 Irrevocable Commitments		617
8. Management Incentives		617
8.1 Equity Incentivisation and Ownership		617
8.2 Management Participation		617
8.3 Vesting/Leaver Provisions		618
8.4 Restrictions on Manager Shareholders		618
8.5 Minority Protection for Manager Shareholders		618
9. Portfolio Company Oversight		619
9.1 Shareholder Control and Information Rights		619
9.2 Shareholder Liability		619
10. Exits		619
10.1 Types of Exit		619
10.2 Drag and Tag Rights		620
10.3 IPO		620
Trends and Developments		621
Contributed by Deloitte Abogados y Asesores Tributarios, S.L.U.		621
SWEDEN		627
Law and Practice		627
Contributed by Gernandt & Danielsson Advokatbyrå		627
1. Transaction Activity		630
1.1 Private Equity Transactions and M&A Deals in General		630
1.2 Market Activity and Impact of Macro-Economic Factors		630
2. Private Equity Developments		630
2.1 Impact of Legal Developments on Funds and Transactions		630
3. Regulatory Framework		632
3.1 Primary Regulators and Regulatory Issues		632
4. Due Diligence		634
4.1 General Information		634
4.2 Vendor Due Diligence		634
5. Structure of Transactions		635
5.1 Structure of the Acquisition		635
5.2 Structure of the Buyer		635
5.3 Funding Structure of Private Equity Transactions		635
5.4 Multiple Investors		636
6. Terms of Acquisition Documentation		636
6.1 Types of Consideration Mechanism		636
6.2 Locked-Box Consideration Structures		637
6.3 Dispute Resolution for Consideration Structures		637
6.4 Conditionality in Acquisition Documentation		637
6.5 “Hell or High Water” Undertakings		637
6.6 Break Fees		637
6.7 Termination Rights in Acquisition Documentation		637
6.8 Allocation of Risk		637
6.9 Warranty and Indemnity Protection		638
6.10 Other Protections in Acquisition Documentation		638
6.11 Commonly Litigated Provisions		639
7. Takeovers		639
7.1 Public-to-Private		639
7.2 Material Shareholding Thresholds and Disclosure in Tender Offers		639
7.3 Mandatory Offer Thresholds		640
7.4 Consideration		640
7.5 Conditions in Takeovers		640
7.6 Acquiring Less Than 100%		641
7.7 Irrevocable Commitments		642
8. Management Incentives		642
8.1 Equity Incentivisation and Ownership		642
8.2 Management Participation		642
8.3 Vesting/Leaver Provisions		643
8.4 Restrictions on Manager Shareholders		643
8.5 Minority Protection for Manager Shareholders		643
9. Portfolio Company Oversight		644
9.1 Shareholder Control and Information Rights		644
9.2 Shareholder Liability		644
10. Exits		644
10.1 Types of Exit		644
10.2 Drag and Tag Rights		645
10.3 IPO		645
SWITZERLAND		646
Law and Practice		646
Contributed by Bär & Karrer Ltd		646
1. Transaction Activity		649
1.1 Private Equity Transactions and M&A Deals in General		649
1.2 Market Activity and Impact of Macro-Economic Factors		649
2. Private Equity Developments		650
2.1 Impact of Legal Developments on Funds and Transactions		650
3. Regulatory Framework		651
3.1 Primary Regulators and Regulatory Issues		651
4. Due Diligence		653
4.1 General Information		653
4.2 Vendor Due Diligence		653
5. Structure of Transactions		653
5.1 Structure of the Acquisition		653
5.2 Structure of the Buyer		653
5.3 Funding Structure of Private Equity Transactions		653
5.4 Multiple Investors		654
6. Terms of Acquisition Documentation		654
6.1 Types of Consideration Mechanism		654
6.2 Locked-Box Consideration Structures		654
6.3 Dispute Resolution for Consideration Structures		654
6.4 Conditionality in Acquisition Documentation		655
6.5 “Hell or High Water” Undertakings		655
6.6 Break Fees		655
6.7 Termination Rights in Acquisition Documentation		655
6.8 Allocation of Risk		655
6.9 Warranty and Indemnity Protection		656
6.10 Other Protections in Acquisition Documentation		656
6.11 Commonly Litigated Provisions		656
7. Takeovers		657
7.1 Public-to-Private		657
7.2 Material Shareholding Thresholds and Disclosure in Tender Offers		657
7.3 Mandatory Offer Thresholds		657
7.4 Consideration		657
7.5 Conditions in Takeovers		658
7.6 Acquiring Less Than 100%		658
7.7 Irrevocable Commitments		659
8. Management Incentives		659
8.1 Equity Incentivisation and Ownership		659
8.2 Management Participation		659
8.3 Vesting/Leaver Provisions		659
8.4 Restrictions on Manager Shareholders		660
8.5 Minority Protection for Manager Shareholders		660
9. Portfolio Company Oversight		660
9.1 Shareholder Control and Information Rights		660
9.2 Shareholder Liability		661
10. Exits		661
10.1 Types of Exit		661
10.2 Drag and Tag Rights		661
10.3 IPO		661
Trends and Developments		663
Contributed by Advestra		663
TAIWAN		668
Law and Practice		668
Contributed by Lee and Li Attorneys-at-Law		668
1. Transaction Activity		671
1.1 Private Equity Transactions and M&A Deals in General		671
1.2 Market Activity and Impact of Macro-Economic Factors		671
2. Private Equity Developments		671
2.1 Impact of Legal Developments on Funds and Transactions		671
3. Regulatory Framework		672
3.1 Primary Regulators and Regulatory Issues		672
4. Due Diligence		672
4.1 General Information		672
4.2 Vendor Due Diligence		673
5. Structure of Transactions		673
5.1 Structure of the Acquisition		673
5.2 Structure of the Buyer		673
5.3 Funding Structure of Private Equity Transactions		673
5.4 Multiple Investors		673
6. Terms of Acquisition Documentation		674
6.1 Types of Consideration Mechanism		674
6.2 Locked-Box Consideration Structures		674
6.3 Dispute Resolution for Consideration Structures		674
6.4 Conditionality in Acquisition Documentation		674
6.5 “Hell or High Water” Undertakings		675
6.6 Break Fees		675
6.7 Termination Rights in Acquisition Documentation		675
6.8 Allocation of Risk		675
6.9 Warranty and Indemnity Protection		675
6.10 Other Protections in Acquisition Documentation		676
6.11 Commonly Litigated Provisions		676
7. Takeovers		676
7.1 Public-to-Private		676
7.2 Material Shareholding Thresholds and Disclosure in Tender Offers		677
7.3 Mandatory Offer Thresholds		677
7.4 Consideration		677
7.5 Conditions in Takeovers		677
7.6 Acquiring Less Than 100%		678
7.7 Irrevocable Commitments		678
8. Management Incentives		678
8.1 Equity Incentivisation and Ownership		678
8.2 Management Participation		678
8.3 Vesting/Leaver Provisions		679
8.4 Restrictions on Manager Shareholders		679
8.5 Minority Protection for Manager Shareholders		679
9. Portfolio Company Oversight		679
9.1 Shareholder Control and Information Rights		679
9.2 Shareholder Liability		680
10. Exits		680
10.1 Types of Exit		680
10.2 Drag and Tag Rights		680
10.3 IPO		680
Trends and Developments		681
Contributed by Lee and Li Attorneys-at-Law		681
USA		687
Law and Practice		687
Contributed by Sidley Austin LLP		687
1. Transaction Activity		690
1.1 Private Equity Transactions and M&A Deals in General		690
1.2 Market Activity and Impact of Macro-Economic Factors		690
2. Private Equity Developments		691
2.1 Impact of Legal Developments on Funds and Transactions		691
3. Regulatory Framework		692
3.1 Primary Regulators and Regulatory Issues		692
4. Due Diligence		693
4.1 General Information		693
4.2 Vendor Due Diligence		694
5. Structure of Transactions		694
5.1 Structure of the Acquisition		694
5.2 Structure of the Buyer		694
5.3 Funding Structure of Private Equity Transactions		695
5.4 Multiple Investors		695
6. Terms of Acquisition Documentation		696
6.1 Types of Consideration Mechanism		696
6.2 Locked-Box Consideration Structures		696
6.3 Dispute Resolution for Consideration Structures		697
6.4 Conditionality in Acquisition Documentation		697
6.5 “Hell or High Water” Undertakings		697
6.6 Break Fees		697
6.7 Termination Rights in Acquisition Documentation		698
6.8 Allocation of Risk		698
6.9 Warranty and Indemnity Protection		698
6.10 Other Protections in Acquisition Documentation		699
6.11 Commonly Litigated Provisions		699
7. Takeovers		699
7.1 Public-to-Private		699
7.2 Material Shareholding Thresholds and Disclosure in Tender Offers		700
7.3 Mandatory Offer Thresholds		700
7.4 Consideration		700
7.5 Conditions in Takeovers		701
7.6 Acquiring Less Than 100%		701
7.7 Irrevocable Commitments		701
8. Management Incentives		701
8.1 Equity Incentivisation and Ownership		701
8.2 Management Participation		702
8.3 Vesting/Leaver Provisions		702
8.4 Restrictions on Manager Shareholders		702
8.5 Minority Protection for Manager Shareholders		702
9. Portfolio Company Oversight		702
9.1 Shareholder Control and Information Rights		702
9.2 Shareholder Liability		703
10. Exits		703
10.1 Types of Exit		703
10.2 Drag and Tag Rights		704
10.3 IPO		704
Trends and Developments		705
Contributed by Debevoise & Plimpton LLP		705
USA – CALIFORNIA		712
Trends and Developments		712
Contributed by Sidley Austin LLP		712
USA – ILLINOIS		720
Trends and Developments		720
Contributed by Much Shelist, P.C.		720
USA – MARYLAND		725
Trends and Developments		725
Contributed by Duane Morris LLP		725
USA – NEW YORK		733
Trends and Developments		733
Contributed by Wachtell, Lipton, Rosen & Katz		733
USA – TEXAS		740
Trends and Developments		740
Contributed by Clifford Chance		740

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