Private equity transactions play an increasingly important role in encouraging the growth of developing markets, businesses and products and this, inevitably, means that more emphasis than ever before is placed on the importance of the specialist private equity lawyer.

The role of the private equity lawyer

During a private equity transaction lawyers help the parties concerned reach agreement regarding the terms and conditions governing the agreement.

Lawyers will frequently seek to help firms supplement their equity with loans from other sources in order to buy targeted companies, often with a view to selling them on at a profit. In some cases, the company's assets will be used as leverage to secure a bank loan: this is what is called a Leveraged Buyout (LBO).

In addition, a good private equity lawyer should be able to confidently assist with the following:

  • Meeting rules, laws and regulations
  • The preparation, acquisition and drafting of financial documents
  • Establishing the structure of any relevant companies
  • Tax and disclosure

Private equity lawyers can advise any party involved in a private equity transaction. This includes the following:

  • The firm or fund making the transaction
  • The firm selling the company
  • The bank or other party providing the finance
  • The senior management of the company or companies involved

How long does the process take?

Private equity transactions can take as long as a year to complete, although the majority will be completed within six months.

In most cases, private equity lawyers will begin by performing a kind of summary analysis of a company before, if the client decides to proceed, moving on to more rigorous checks, including due diligence.

Only once the private equity process is near completion do lawyers draft and negotiate contracts and finalise the details of financing.

Help and advice from an experienced private equity lawyer

Oratto's corporate lawyer membership includes many specialists in private equity law, all of whom can bring value to every aspect of a private equity deal.

Many of our members are leaders in their areas of expertise and have built their reputations servicing the full range of clients, including management teams, banks and companies.

Whether you require help with structured acquisitions and finance, venture capital for a start-up or a complex cross-border transaction, we are confident that we have a member lawyer who can help you achieve your objectives with confidence.

Contact Oratto today for in-depth legal advice on achieving a successful private equity deal.