Minority investment strategies and pipeline development

• Determining the fund’s strategic value, potential synergies, and expected return
• Developing deal flow and relationships in the VC and CVC ecosystem 
• Evaluating various valuation approaches and key assumptions
• Methods for testing growth assumptions and various market scenarios
• Conducting rapid and comprehensive founder / management team diligence
• Performing technology assessments including IP ownership and quality of code
• Accelerated diligence on legal, financial, and market growth dynamics / size

Minority investments structuring 

• Evaluating cap tables, liquidation preference, and employee stock option pools
• Considerations associated with information rights and board / observer access
• Protective provisions including voting, redemption rights, and other risks
• Mechanisms for right of first refusal, pro rata, and anti-dilution 
• Conversion terms including optional and automatic frameworks
• Understanding convertible debt, convertible equity, and venture debt mechanisms
• Evaluating NVCA deal terms and alternatives

Minority investment governance

• Determining the optimal portfolio construction and level of diversification
• Defining the investment criteria, target stage(s), and framework for co-investments 
• Structuring the legal and financial elements of the CVC fund and financing
• Understanding the tax implications for both the parent company and the CVC
• Setting up the decision-making process for additional investments and exits
• Evaluating various exit options and the pros / cons of each
• Measuring the return on minority investments

The Institute is an accredited provider of CLE in Illinois. This M&A Master Class offers 4.75 CLE credits. An Illinois certificate will be issued. If you are licensed in another state, please check for reciprocity regarding continuing education credits.