Control Transactions in the UK Mid-Market

February 12, 2015

In a number of transactions in the UK mid-market in which we have been involved recently, we have noted a departure from the traditional private equity buy-out model, whereby the sponsor acquires 100% of the target and satisfies the consideration with a mixture of cash and paper issued by the acquiring entity. In transactions involving a partial acquisition of the target with some existing shareholders cashing out and others, typically management and their close affiliates, retaining a significant proportion of the equity, the rights afforded to the management team with respect to the governance and future exit of the target can be surprisingly different.

Read "Control Transactions in the UK Mid-Market."