
Executing M&A from a Legal Perspective
M&A Science
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Private Equity Firm
Private equity firm buys a company, grows the company and then sells it to another private equity firm. The reason is that existing investors want to get liquidity so they buy with other new funds. But this creates a conflict between two different types of investments. So how do you mitigate that conflict? You can bring in a third party to buy the company alongside the new fund. That provides a third party mark. It's not buying it on the cheap just to benefit your new fund.
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