Private Equity

Signing up the agreements for a venture capital investment is only the first step in a collaboration between the investors and the management team. The client's ultimate objective of a profitable exit is potentially several years away and the relationship will have to endure if it is to be successful. The legal documentation is something of a pre-nuptial agreement where divorce is contemplated even before the marriage vows are exchanged.

We believe that having a good understanding of this background is central to providing sensible and effective legal advice in private equity transactions, regardless of whether the client is the investor or the management team. As the atmosphere in the conduct of the legal process can help to make or break the relationship, that process must be conducted in a businesslike, pragmatic and realistic manner. This needs lawyers who have not only first class experience but also the right approach.

The partners in Marriott Harrison's corporate department all have that experience and approach their work in a way which aims to promote business relationships rather than harm them. Each of the partners in the department has many years of City experience in representing venture capitalists and management teams on the widest range of private equity transactions. Acting on these deals over a number of years and familiarity with each side of the negotiating table gives a perspective which we believe can add value for our clients.

Each deal will tend to fall into the industry standards for private equity legal documentation. The documentation will inevitably include the usual items - subscription agreement, articles of association, service agreements, disclosure letter not to mention bank facilities and security.

But each deal will also have its own special circumstances and will give rise to questions where the answers depend upon the deal itself. What warranties is it reasonable for management to give? What happens to management equity if one of the management team leaves? What veto powers should the investors have? Where does the right balance lie between autonomy for management and protection for the investors? The answer to these questions and the way they are approached can make a significant difference to the success of the deal for each side.

We can help you reach the right answers for your deal.