PEINVEST
Provisions that allow minority shareholders to join a transaction when majority shareholders sell their stake, ensuring they can exit on the same terms and conditions. Tag-along rights protect minority investors from being left behind in a sale.
Provisions that enable majority shareholders to force minority shareholders to join in the sale of a company, typically on the same terms and conditions. Drag-along rights prevent minority holdouts from blocking transactions approved by the majority.
A non-binding document outlining the key terms and conditions of a proposed investment or acquisition. Term sheets cover valuation, governance rights, liquidation preferences, and other material deal terms, serving as the basis for definitive legal documentation.