Private equity sponsors are increasingly eyeing Canadian public companies as attractive acquisition targets. For public company boards and their advisers, a take-private proposal from a financial sponsor raises unique strategic, governance, and execution considerations. Sponsors approach valuation, diligence, financing, management participation and deal certainty differently from strategic buyers - differences that can materially affect how a target should respond and how a transaction unfolds.
Drawing on the perspectives of a senior investor, director and advisers, this panel will take participants inside the sponsor-led take-private process. From how sponsors identify and underwrite potential investments through the target board’s response, negotiation and execution of the transaction, the discussion will explore what happens on both sides of the table – and what boards, management, in-house counsel and advisers need to understand – when private equity comes calling.
Key topics include:
How financial sponsors identify and underwrite public company acquisition opportunities
How financial sponsors approach valuation and negotiation, and how they differ from strategic buyers
How public company boards should respond to PE transaction proposals
Management retention and compensation arrangements
Shareholder lock-ups and rollovers
Deal certainty, including financing commitments and target remedies
