Reviewing the advisory agreement and wanted to know how aggressive we should be pushing (this is a form of my due diligence, lawyers and peers also reviewing but would love any Dir/MDs to weigh in)
Target sale price is 40m-65m+, firm has a 1.5 fee floor and 6% incremental we above 50. Few folks have said that’s high for mid market.
Tail period is 12mo, feels standard but founder is jumpy. How much heartburn is around this term if I push hard on this? If things go well we don’t care. But if we have a falling out we don’t want to have to wait to pick back up. If we push for 3-6mo is this a slap in their face?
Indemnity is BROADLY favoring the bank. This isn’t jpart of it or can we add some bumpers (gross negligence, etc)
Break up fee is 30% due to IB if triggered. Is there a tired way to structure this (if fee is X, IB gets this, if it’s Y, IB gets that)
I don’t wanna be in the news or easily searchable so im tightening up marketing rights and protocol (review required)
Walk away period - ability to exit if initiatives shift - how could I write this to protect both parties?
At the end is the day we like the folks but want to get some opinions on what is motivating to get the right deal done and still provides us protection. But this could be a lot of deals over the next 5-10 years (we’d go buy side next)
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