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Such information that holder of securities would

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Such information that holder of securities wouldreasonably require to make an informedassessment.The recommendation of directors.An expert’s report is mandatory in the eventthat:-Acquirer’s existing voting % in target >30%,and/or-There is a common director.Conditional offer:No material adverse change in financial position of target during the bid periodReceipt of a nominated % of acceptancesFIRB or ACCC approval (if applicable)Mo material litigation arises during bid period.Week 8Private Equity capital:A source of capital for enterprises in addition to that available through public capital marketsParticipation in an M&A activityDevelopment of privately owned company for resaleHive-off of business of a conglomerate (transfer part of business to new ownership by selling it)The provision of venture capitalFinancing of leveraged or management buyouts.Types of private equity transactions1. Purchase of a private company:– A source of expansion capital and management expertise to developcompany for trade sale or an IPO.– Assists business owners who wish to convert assets from fixed to liquid.2. Purchase of a public company:– Smallest, but most publicised activity.3. Purchase of division of publicly listed company:– Non core businesses.Principal contributors of equity funds to private equity funds
Direct investment: is made by private equity firms in other firms that are seeking expansion capital orhave been identified as a buy-out target.Indirect investment: represents the equity component in the direct investment. It represents thecapital contributed by those that invest in the funds controlled by private equity firms. These fundswill invest in 3-4 companies.More passive form than indirect investment involves investors (institutional or retail investors)investing in a diversified fund of private equity funds (funds of funds)Role of managersAssess hundreds of potential investments, conduct detailed due diligence on around 10%, oraround 10-15 investmentsStress: o-The closed end nature of funds-Many funds will have an investment strategy mandatesee Lecture Slide 13-Funds likely to be spent progressively over 3 years, with fund life from 510years-Discuss J curve returns.-Managers must:oAssess applications for funds & then carry out due diligence on certainselected final applicants.oComplete a Terms Sheet with selected applicantssee overhead 65indicatepurpose of each condition.oBecome involved with introduction of new key management (if needed),strategy & planning, and networking with potential new suppliers andpurchasers. Need to spend up to 3 to 4 days per month with selected companies.The fee structure should also be discussedLecture Slide 13. Explain it represents a fee formanagement services/finance availability/strategic advice/networking provided.

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Term
One
Professor
Nagyu yen

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