growth chap3

Question 1

Growth equity investments are usually made in exchange
for a …

Answer 1

minority equity stake

Question 2

the key aspect differentiating control buyouts from growth equity is the active role both
founders and management teams retain in the company:
T or F

Answer 2

F

Question 3

In …, growth equity’s minority investments enable owner/managers to maintain control over the board and daily operations.

Answer 3

SMEs

Question 4

…. companies where founders often relinquish significant equity and governance rights in earlier fundraising rounds.

Answer 4

late-stage VC-backed

Question 5

the PE deals in emerging markets are …

Answer 5

minority investments
into mature SMEs

Question 6

Finalizing and executing growth equity deals is typically easier than in more complex
buyout transactions;
T or F

Answer 6

T

Question 7

the lack of leverage and the smaller number of parties involved
makes negotiation

Answer 7

growth equity