M&A Science How Private Equity Firms Structure M&A Deals with Jon Dhanawade
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May 8, 2025 Jon Dhanawade, a Private Equity M&A Partner at Mayer Brown and adjunct professor at Northwestern Law, shares his wealth of knowledge on structuring M&A deals. He discusses how private equity firms effectively use practices like rollover equity and seller notes to align incentives. Jon also highlights key legal red flags to watch for during diligence and offers strategies for negotiating Letters of Intent. Listeners gain insights into common pitfalls, the necessity of building strong relationships, and the importance of thorough due diligence in navigating complex transactions.
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PE Deals Move Faster than Strategics
- Private equity deals move faster than strategic deals due to focused, deal-driven business professionals.
- PE transactions often feature simpler documentation and fewer regulatory burdens than public company deals.
Private Credit Offers Bespoke Financing
- Private credit structures are highly bespoke and more flexible than traditional bank loans.
- PE firms use private credit to creatively finance deals beyond conventional amortized loans.
PE Focuses on Portfolio Enhancement
- PE funds are increasingly focusing on portfolio enhancement during slow markets.
- This involves improving existing assets rather than immediate exits to add future value.