Documentation in Corporate Finance

Overview

Course Overview:

 Participants will gain an understanding of the principal points for negotiation in the core documentation required for the successful execution of corporate finance deals.

 The course focuses, from a practical point of view, on the content and terminology of specific documents and their intended consequences.

 Particular problem areas are highlighted so that corporate financiers will achieve an appreciation of the objectives that their lawyers should be seeking to achieve on their behalf.

 Such knowledge should enable commercial negotiations to proceed more smoothly and potential ‘deal breakers’ to be identified at an early stage. Problems can then be resolved informally as they arise rather than in marathon negotiating sessions where the positions of the parties may have become entrenched.

 Course Content:

 Background and overview

Ø       Structure of an agreement

Ø       Pre-conditions and covenants

Ø       Representations, warranties and indemnities

Ø       Purpose and scope of warranties

Ø       Vendor protection clauses

Ø       Disclosure letter

Ø       Protection and remedies of the purchaser

 Initial documentation

Ø       Confidentiality letter

Ø       Business plan

Ø       Information memorandum

 Supporting documentation

Ø       Letter of intent & heads of agreement

Ø       Exclusivity agreement

Ø       Comfort letters & side letters

Ø       Hold harmless letter

 Subordinate documentation

Ø       Shareholders agreement

Ø       Service contract

Ø       Consultancy agreement

Ø       Option agreement

Ø       Accountants report

 Loan & security documents

Ø       Possession, ownership and rights

Ø       Loan agreements

Ø       Guarantees and indemnities

Ø       Loan representations and warranties

Ø       Financial covenants

Ø       Events of default

Ø       Notification of default

 Flotations

Ø       Subscription/placing agreements

Ø       Offer for subscription

Ø       Offer for sale

Ø       General duty of disclosure

Ø       Underwriting agreements

Ø       Verification notes