Term Sheet: Private Equity Stock Acquisition | Practical Law

Term Sheet: Private Equity Stock Acquisition | Practical Law

A term sheet for the purchase of all the outstanding capital stock of a private US corporation by a private equity fund, drafted in favor of the fund. This Standard Document assumes a single corporate buyer owned by the private equity fund and a single corporate seller. This Standard Document may also be referred to as a memorandum of understanding or attached as an exhibit to a letter of intent. This Standard Document has integrated notes with important explanations and drafting and negotiating tips.

Term Sheet: Private Equity Stock Acquisition

Practical Law Standard Document w-001-4779 (Approx. 30 pages)

Term Sheet: Private Equity Stock Acquisition

by Practical Law Corporate & Securities
Maintained • USA (National/Federal)
A term sheet for the purchase of all the outstanding capital stock of a private US corporation by a private equity fund, drafted in favor of the fund. This Standard Document assumes a single corporate buyer owned by the private equity fund and a single corporate seller. This Standard Document may also be referred to as a memorandum of understanding or attached as an exhibit to a letter of intent. This Standard Document has integrated notes with important explanations and drafting and negotiating tips.
On August 23, 2023, the SEC adopted new rules under the Investment Advisers Act of 1940 for private fund advisers (see Legal Update, SEC Adopts New Rules for Private Fund Advisers) (the "New Rules"). The New Rules are generally effective 12 to 18 months after publication in the Federal Register and will have a material impact on limited partnership agreements for private equity funds and may require revisions to this resource. Updates are planned in the near future. For more information on the final rule, see Private Fund Advisers; Documentation of Registered Investment Adviser Compliance Reviews, Fed. Reg. 88 FR 63206 (Sept. 14, 2023).