Clifford Chance

Stub Equity: A different route to control

21 July 2023

In "take private" transactions, while cash is usually king, there are a range of non-cash forms of consideration that can be used to get a deal across the line. As we move through a more challenging part of the economic cycle during which reaching consensus on valuations may be harder to achieve and raising capital on favourable terms is less straight forward, one of the trends we expect to see is for bidders to consider alternative forms of consideration to cash.

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