ACQUISITION UNITS - HOW TO FILL IN BLANKS ON MY PPM?
I'm working on my PPM. I'm starting with the PPM exhibit from the Stanford primer, but I don't know how to fill in the blank in the "Right of First Refusal" paragraph that comes up twice in the document.
It says "Investors will have the right to participate in financing the acquisition, but are not obligated to do so. Depending on the size and structure of the acquisition, investors are expected to have the opportunity to invest another $______ to $______ per unit at the time of acquisition. Investors will be given the opportunity to provide 100% of the required equity in order to prevent dilution from outside investors. "
Is that range of figures typically some multiple of the unit amount on which I decided for raising the fund? My fund units are about $40,000, so the additional investment, in the deal, would be in larger units? Or just more units? Help!