Facilitator Guide

Private Equity M&A vs. Strategic M&A

Facilitator Guide

Private Equity M&A vs. Strategic M&A

Topic: Private Equity
Duration: 1 hr
Format: Unspecified

What’s covered

Investment goals
Sources of funding
Blocker companies
Rollover equity
Management retention
Break-up and reverse break-up fees

Before the session

Prepare the Attendees

Send the attendees an invitation for the session. Include this link, which has the videos and exercise they’ll need to prepare.

https://www.hotshotlegal.com/trainings/private-equity-m-a-vs-strategic-m-a/attendee

Prepare Yourself

Watch the videos and read the exercise so you’re familiar with the Hotshot material.

Course

Private Equity M&A vs Strategic M&A

The key differences between private equity M&A and strategic M&A, including investment goals, sources of funding, deal complexity, management retention, and break-up fees.
Exercise
PDF

During the session

Part 1: Knowledge Check

Ask attendees these questions to ensure they understand the topic:

Why are PE M&A deals usually riskier for the buyer than strategic deals?
What are some reasons PE M&A deals are typically more complex than strategic M&A deals?
How do PE buyers align management’s interests with their own?
What type of buyer is most likely to keep existing management? Why?
What is the difference between a break-up fee and a reverse break-up fee?

Part 2: Group Exercise

Lead a group discussion based on the exercise. To encourage collaboration, divide the attendees into groups to discuss the exercise, then have a representative from each group summarize their views to the larger group. Call on people to share their thoughts and ask others to respond.

Tip for remote sessions: use your web conferencing system’s breakout room feature to divide people into groups.

Part 3: War Stories and Firm Specifics

Share your own experiences and guidance, including:

Anecdotes and war stories (e.g., about a near-disaster or a tough negotiation)
General practice tips (dos and don’ts)
Firm-specific guidance and practices

After the session

To continue their learning, attendees can check out related courses in Hotshot’s Private Equity topic.

About Hotshot

Hotshot helps lawyers develop their legal, business, and technology skills through short videos, quizzes, and summaries, and we help law firms and law schools plan and deliver engaging training programs. Our customers include Am Law 200 firms, top law schools, and regional and international firms.