Excerpt from Practical Guidance

Negotiating Control And Liquidity Rights In PE Deals

Law360, New York (July 1, 2013, 10:18 AM EDT) -- Given the private equity buyer's desire to exit its investment at a profit within a certain amount of time, a PE fund must ensure that it retains a certain amount of control over the portfolio company and has enough rights to control the manner of its exit from the investment. In order to protect its investment, PE sponsors will usually negotiate new organizational documents, a stockholders' agreement or operating agreement and a registration rights agreement for Holdco, the parent of the portfolio company in which the PE fund and management are invested....

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