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Pandemic-Related Deal Litigation Highlights Buyer Leverage in Transactions Requiring Debt Financing

Cooley M&A

Since that post, the Delaware Chancery Court has had the opportunity to consider some preliminary issues relating to certain of those jeopardized transactions involving private equity-backed buyers.

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The Twitter Buyout: Is Elon Musk a Madman or a Genius?

Brian DeChesare

Worst Case Outcome: Elon loses ~90%+ of his invested equity and gets a very negative IRR. If you want the full tutorial, Excel model, highlighted documents, and more about the most important technical points, keep reading: The Video Tutorial, Excel File, Documents, and More. 17:36: Part 4: Cash Flows and Debt Repayment.

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Exploring Venture Debt: Benefits, Risks, and Tradeoffs

Lighter Capital

Venture debt has exploded in popularity in the last few years. For some startups, venture debt can be a solid option to boost cash flow and supplement a VC round with very little dilution to their remaining equity. What is venture debt? There is no venture debt without venture capital.

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Sidley Discusses Chancery Opinion Highlighting Importance of Clear Integration and Non-Reliance Provisions in M&A Agreements

Reynolds Holding

Castle Creek”), the buyer, and Paragon Biosciences, LLC (“Paragon”), the buyer’s private equity sponsor. In fact, one such Castle Creek debt financing document, a February 2020 loan agreement, did not permit Castle Creek to redeem its equity securities. to Castle Creek for cash and Castle Creek preferred stock.

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SBA Loan for Business Purposes

Peak Business Valuation

To finance these activities, you can sell equity ownership or take on debt. For more information, see Debt vs. Equity Financing. Gather Business Documentation Fourth, gather the necessary info to apply for an SBA loan for business purposes. Both methods have their benefits.

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Have Your Cake, and Closing Too: Invoking Prevention Doctrine, Delaware Chancery Court Grants Seller’s Request for Specific Performance in COVID-Related M&A Dispute

Cooley M&A

In reaching this order, the court applied the prevention doctrine, finding that the unavailability of buyer’s debt financing did not permit buyer to circumvent its obligation to close because buyer materially contributed to the debt financing being unavailable. All of those demands were rejected by the lenders.

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SAFE Caps and Discounts: Setting the right terms for your round

Equidam

There are two main categories of convertible instrument: Convertible Notes, a form of debt with interest payments until the point of conversion, and SAFEs which are quite literally simple agreements for future equity. A valuation cap is a ceiling on the price at which the investment will convert to equity. What is a cap?