A secondary buyout (SBO) involves the sale of a group (the target) by a private equity fund and the target’s management team to a company (newco) funded by a new private equity investor in conjunction with the management. The SBO has become a popular exit route for private equity funds.
Making an investment into another state, known as foreign direct investment (“FDI”), generally carries a significantly different risk profile from investment in an investor’s domestic market. FDI may be exposed to greater risks arising from the political, regulatory and economic environment of the State into which investment is made.
Warranties and indemnities play an important role in merger and acquisition (‘M&A’) transactions, enabling the parties to negotiate the balance of risk between them. Warranty and Indemnity insurance (‘W&I Insurance’) allows the parties to shift risk by insuring against potential breach of warranty or breach of indemnity claims by a buyer following completion.
These are the harshest of times for the casual dining industry. Much like it is elsewhere on the beleaguered high-street, it seems that every week brings headlines of another restaurant business becoming insolvent or making mass closures. The past few months alone have seen established names such as Prezzo, Byron, Gaucho, Jamie’s Italian, Côte Brasserie and Strada close numerous outlets. Meanwhile, Carluccio’s is undergoing an insolvency process (a Company Voluntary Arrangement) to try to rescue itself.