Trying to get color on co-investor equity structure and terms for a self funded search where the searcher is investing capital in the deal and also raising outside capital. Does anyone have a sample term sheet or summary of basic equity structure and terms for co-investors coming in at acquisition for a self funded search? I understand co-investors are typically investing in preferred stock with a dividend; is there typically also a liquidation preference? I have seen a few deals where outside of the management common stock that vests, the co-investors buy in at a higher valuation than the enterprise value of the deal (i.e., get a lower ownership % for their $) so that the searcher gets a higher % of the preferred equity for their invested dollars. Can anyone point me in the right direction of how to think about these items? Thanks!
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We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
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