Process Flashcards
1
Q
- LP Investors
A
- Limited Liability
- Commitment
- Management Fees
- Carried Interest
- Superior Returns
2
Q
- PE/VC Fund
General Partners
Private Placement Memorandum
A
Sector, Stage and Geography
Track Record
Deal Flow
Execution
Terms
3
Q
- Investee Company
VC/MBO
Business Plan
A
- Leads into evaluation of investment proposition
- Internal/initial due diligence
Product/service
Market
Business Model
Management
4
Q
- Offer Letter
Terms
A
Valuation
Equity Stake
Leads to external due diligence
Do deal
Fix issue
Amend terms
Abort deal
5
Q
- Shareholder / Investment Agreement
A
Cash for equity
Leads to Monitoring and Adding value
Look for danger signs
6
Q
- Exit
A
Trade Sale
IPO
Secondary Sale