Understanding Corporate Finance Documents

14 videos – 4 hours 27 minutes

The course focuses, from a practical point of view, on the content and terminology of specific documents and their intended consequences.

Particular problem areas are highlighted so that corporate financiers will achieve an appreciation of the objectives that their lawyers should be seeking to achieve on their behalf.

Such knowledge should enable commercial negotiations to proceed more smoothly and potential ‘deal breakers’ to be identified at an early stage. Problems can then be resolved informally as they arise rather than in marathon negotiating sessions where the positions of the parties may have become entrenched.

Understanding Corporate Finance Documents

Full list of videos for this course

  • Video 01: Initial Documents – Non-Disclosure Agreements
  • Video 02: Initial Documents – The Information Memorandum
  • Video 03: Supporting Documents – Heads of Agreement, Exclusivity Agreements, Comfort Letters
  • Video 04: Principal Documents – Shareholders’ Agreements
  • Video 05: Principal Documents – Service Agreements, Consultancy Agreements
  • Video 06: Principal Documents – Option Agreements
  • Video 07: The Structure of an Agreement – Parties, Definitions, Pre-conditions, Covenants
  • Video 08: The Structure of an Agreement – Representations & Warranties
  • Video 09: The Structure of an Agreement – The Purpose & Scope of Warranties
  • Video 10: The Structure of an Agreement – Protection Clauses for the Seller
  • Video 11: The Structure of an Agreement – Effect of the Seller’s Disclosure Letter
  • Video 12: The Structure of an Agreement – Protection Clauses & Remedies for the Buyer
  • Video 13: Completion – Managing a Completion Meeting
  • Video 14: Completion – Resolving timing problems

Understanding Corporate Finance Documents

Course Outline

  • The Mechanics of a Legal Agreement

    • Structure of an Agreement – boilerplate, reasons for house style and usual content
    • Pre-Conditions – don’t give the purchaser a one-way option
    • Covenants – extra vigilance where exchange and completion are not concurrent
    • Representations, Warranties and Indemnities – what they mean and how they differ
      • Vendor’s Misrepresentation – innocent, non-contractual, negligent or fraudulent?
      • Purchaser’s Remedies – rescission or damages (for deceit, breach of contract or tort)
    • Joint & Several Liability – who pays the damages?
    • Purpose and Scope of Warranties – what they seek to achieve
    • Vendor Protection Clauses – how a vendor should limit the effect of the warranties
    • Vendor’s Disclosure Letter – how it dilutes a purchaser’s remedies
    • Purchaser’s Protection & Remedies – extending protection and when to use indemnities
  • Initial Documentation

    • Confidentiality Letter – what protection does it offer and what else can it be used for?
    • Business Plan – adapt it to borrow money, sell the company, raise private equity or float
    • Information Memorandum – three conflicting objectives to be resolved
  • Supporting Documentation

    • Letter of Intent & Heads of Agreement – what they are for and when to use them
    • Exclusivity Agreement – when to give exclusivity and when to take it away
    • Comfort Letters & Side Letters – useful for oiling the wheels of a deal
    • Hold Harmless Letter – auditors for vendors should insist on one
  • Subordinate Documentation

    • Shareholders Agreement – limiting majority control, agreeing future relationships
    • Service Contract – not to be overlooked: happy clients are repeat business
    • Consultancy Agreement – sometimes more effective than a service contract
    • Option Agreement – a painless method of paying for future services?
    • Accountants Report – long and short form reports & working capital statement
  • Flotations

    • General Offer or Placing – when are they used?
    • Offer for Subscription or Offer for sale – what is the difference?
    • General Duty of Disclosure – extent of duty and consequent reputational and legal risks
    • Verification Notes – reduce the possibility of defective disclosure
    • Underwriting Agreements – hard or soft underwriting and force majeure