Closing Documentation Overview
- 01:27
Describes what the main documents are for a private equity deal to close.
Downloads
No associated resources to download.
Glossary
LBOs M&A Private Equity Transaction ServicesTranscript
Closing documentation.
Closing documentation includes equity and debt legal documentation that needs to be completed for the deal to close.
This takes place at the very end of the investment process when terms are agreed between all parties and for completion and transfer of ownership to take place.
Once these documents are signed money is wired between the parties as per the acquisition structure steps and the business belongs to the new owners.
Equity documentation includes legal paperwork that transfers ownership from the vendor to the new owner.
This will make sure that all loose ends are tied in terms of handing over the keys to the business. Equity documentation also includes signing all agreements needed with regards to governance of the business going forward.
That documentation is legal paperwork that covers the agreements between lenders and the borrowers this effectively allows the creation of pledges and security over the business by the lenders for them to be able to wire the loan amounts to the appropriate legal entities in the acquisition structure loan documentation also includes agreements between different lenders in the capital structure if there is more than one lender in the process.