Advanced

Buyouts - Så säkrar PE-bolaget sina intressen som majoritetsinvesterare

Gustafsson, Anna LU (2011) JURM01 20112
Department of Law
Abstract (Swedish)
Riskkapitalmarknaden kan härledas så långt tillbaka som till 1940-talet då de första private equity-investeringarna genomfördes i USA, och sedan dess har branschens utsträckning ständigt förändrats i takt med det rådande ekonomiska klimatet, både hög- och lågkonjunkturer, och är idag ett starkt etablerat fenomen även i Sverige.

Private equity är den investeringsform som inom samlingsbegreppet riskkapital, representerar de investeringar som sker i onoterade bolag. Vad som ytterligare är utmärkande är att investeringarna vanligtvis innefattar ett visst ägarengagemang samt att målsättningen typiskt sett är att avyttra investeringen inom en begränsad tid. Fokus i uppsatsen kommer att läggas på en särskild typ av PE-investeringar, så kallade... (More)
Riskkapitalmarknaden kan härledas så långt tillbaka som till 1940-talet då de första private equity-investeringarna genomfördes i USA, och sedan dess har branschens utsträckning ständigt förändrats i takt med det rådande ekonomiska klimatet, både hög- och lågkonjunkturer, och är idag ett starkt etablerat fenomen även i Sverige.

Private equity är den investeringsform som inom samlingsbegreppet riskkapital, representerar de investeringar som sker i onoterade bolag. Vad som ytterligare är utmärkande är att investeringarna vanligtvis innefattar ett visst ägarengagemang samt att målsättningen typiskt sett är att avyttra investeringen inom en begränsad tid. Fokus i uppsatsen kommer att läggas på en särskild typ av PE-investeringar, så kallade buyouts, som är en del av både private equity- och riskkapitalmarknaden men som särskilt kännetecknas av att dessa utköp görs genom majoritetsinvesteringar i mer mogna bolag, till skillnad från så kallade venture capital-investeringar som istället görs i bolag som befinner sig i uppstarts- eller expansionsfaser. Utmärkande för buyouts är även att investeringen ofta görs i samarbete med ledningen i målbolaget och det är dessutom vanligt att den ägarfinansierade andelen kompletteras med lånekapital från exempelvis en bank. Det existerar en rad olika typer av buyouts på marknaden, och vad de alla har gemensamt är att de görs i bolag som har stark utvecklingspotential och som samtidigt är i behov av ett aktivt ägande i form av investerare med både kapital och kompetens.

Vad som gör dessa investeringsformer särskilt intressanta är att det i princip saknas något lagreglerat skydd inom svensk rätt för just riskkapitalinvesteringar och därför krävs att PE-bolagen själva skapar ett skydd för sin investering genom diverse olika avtalsbestämmelser. Detta görs främst genom regleringar i investeringsavtalet, vilket består av både själva teckningsavtalet samt ett aktieägaravtal, men också genom reglering av vissa bestämmelser i bolagsordningen. PE-bolaget kan dels reglera diverse olika garantier i teckningsavtalet men majoriteten av de olika intressen som investeraren vill säkra regleras i aktieägaravtalet. Främst regleras här själva ägarstyrningen av bolaget och även de incitamentsprogram som kan tänkas användas i syfte att skapa värde i det bolag i vilket investeringen har gjorts. Av den enkla anledningen att buyouts generellt sett är tidsbegränsade, är dess huvudsakliga syfte att inom en bestämt tid avyttra portföljbolaget genom en så kallad exit. Således erhåller investeraren sin avkastning i form av kapitalvinst och bestämmelserna för hur en sådan ska gå till, regleras även de i aktieägaravtalet. Vidare kan det vara av yttersta betydelse för investeraren att i bolagsordningen reglera de olika typer av överlåtelseförbehåll som ska gälla under investeringen och bolagsordningen fungerar som ett parallellt skydd för investeraren vid sidan om investeringsavtalet.
Utöver de tvingande regler som finns i ABL, finns inga direkta bestämmelser som specifikt reglerar private equity-investeringar. Därför krävs istället av investeraren att denne skapar sitt eget skyddsnät genom genomtänkta regleringar i investeringsdokumentationen och på grund av denna brist på särskilda lagregleringar på området, kommer det övergripande syftet med uppsatsen vara att utforska och redogöra för hur investeraren har möjlighet att reglera sina intressen genom investeringsavtalet och bolagsordningen och därefter beskriva hur dessa möjligheter fungerar i praktiken. (Less)
Abstract
The risk capital market can be traced as far back as the 1940s when the first private equity investment was made in the United States, and since then, the industry has constantly changed along with the current economic climate, and is today a strongly established phenomenon even in Sweden.

The term private equity covers all investments that are made in unlisted companies and they typically involve a certain commitment in ownership and the goal typically is to sell the investment within a limited time. The focus of the essay will be on a specific type of PE investments, known as buyout, and characteristic for this form of investment is that it is made through a majority ownership in generally more mature companies, as opposed to the so... (More)
The risk capital market can be traced as far back as the 1940s when the first private equity investment was made in the United States, and since then, the industry has constantly changed along with the current economic climate, and is today a strongly established phenomenon even in Sweden.

The term private equity covers all investments that are made in unlisted companies and they typically involve a certain commitment in ownership and the goal typically is to sell the investment within a limited time. The focus of the essay will be on a specific type of PE investments, known as buyout, and characteristic for this form of investment is that it is made through a majority ownership in generally more mature companies, as opposed to the so called venture capital investments which are made in companies in their start-up or expansion phases. Other special features of the buyout is that it often is made in cooperation with management in the target company and it is also common for parts of the investment to be financed by leveraged capital in some shape or form. There exist a number of different types of buyouts in the industry, and what they all have in common is that they are all made in companies that have strong growth potential and that are also in need of an active ownership by investors with both capital and expertise.

What makes these types of investments particularly interesting, is the lack of regulated protection under Swedish law, which requires of the investment companies to create their own protection through a variety of different contractual arrangements. This is done mainly through regulations in the Investment Agreement, which includes both the Subscription Agreement and the Shareholders' Agreement, but also through regulation of certain provisions in the company’s Articles of Association. Usually private equity-companies regulate various warranties in the Subscription Agreement, but generally the majority of their different interests are regulated in the Shareholders’ Agreement. What’s mainly regulated herein is the company’s corporate governance related questions and also the incentive programs which may be used in order to create value in the company in which the investment has been made. Generally buyouts are limited in time and hence, the main purpose is to sell the portfolio company within a certain time through a so-called exit. In this way, the investor receives a return on his investment and the rules for how these procedures shall be implemented, is also regulated in the Shareholders’ Agreement. Furthermore, it may be of utmost importance for the investor to regulate the applicable transfer restrictions in the Articles of Association since it basically works as a parallel protection for the investor in addition to the Investment Agreement.

In addition to the mandatory provisions contained in the Swedish Companies Act, there are no provisions which specifically regulate private equity investments. Therefore the investors instead have to create their own safety net through well thought-out regulations in the investment documentation. Because of this lack of a specific regulation in the relevant area, the overall purpose of this paper is to explore and describe the investor’s possibilities to regulate his interests through the Investment Agreement and the Articles of Association and also to describe how these options work in practice. (Less)
Please use this url to cite or link to this publication:
author
Gustafsson, Anna LU
supervisor
organization
alternative title
Buyouts - How PE-companies secures their interests as majority investors
course
JURM01 20112
year
type
H3 - Professional qualifications (4 Years - )
subject
keywords
Förmögenhetsrätt
language
Swedish
id
2204628
date added to LUP
2011-11-17 15:03:46
date last changed
2011-11-17 15:03:46
@misc{2204628,
  abstract     = {The risk capital market can be traced as far back as the 1940s when the first private equity investment was made in the United States, and since then, the industry has constantly changed along with the current economic climate, and is today a strongly established phenomenon even in Sweden.

The term private equity covers all investments that are made in unlisted companies and they typically involve a certain commitment in ownership and the goal typically is to sell the investment within a limited time. The focus of the essay will be on a specific type of PE investments, known as buyout, and characteristic for this form of investment is that it is made through a majority ownership in generally more mature companies, as opposed to the so called venture capital investments which are made in companies in their start-up or expansion phases. Other special features of the buyout is that it often is made in cooperation with management in the target company and it is also common for parts of the investment to be financed by leveraged capital in some shape or form. There exist a number of different types of buyouts in the industry, and what they all have in common is that they are all made in companies that have strong growth potential and that are also in need of an active ownership by investors with both capital and expertise.

What makes these types of investments particularly interesting, is the lack of regulated protection under Swedish law, which requires of the investment companies to create their own protection through a variety of different contractual arrangements. This is done mainly through regulations in the Investment Agreement, which includes both the Subscription Agreement and the Shareholders' Agreement, but also through regulation of certain provisions in the company’s Articles of Association. Usually private equity-companies regulate various warranties in the Subscription Agreement, but generally the majority of their different interests are regulated in the Shareholders’ Agreement. What’s mainly regulated herein is the company’s corporate governance related questions and also the incentive programs which may be used in order to create value in the company in which the investment has been made. Generally buyouts are limited in time and hence, the main purpose is to sell the portfolio company within a certain time through a so-called exit. In this way, the investor receives a return on his investment and the rules for how these procedures shall be implemented, is also regulated in the Shareholders’ Agreement. Furthermore, it may be of utmost importance for the investor to regulate the applicable transfer restrictions in the Articles of Association since it basically works as a parallel protection for the investor in addition to the Investment Agreement.

In addition to the mandatory provisions contained in the Swedish Companies Act, there are no provisions which specifically regulate private equity investments. Therefore the investors instead have to create their own safety net through well thought-out regulations in the investment documentation. Because of this lack of a specific regulation in the relevant area, the overall purpose of this paper is to explore and describe the investor’s possibilities to regulate his interests through the Investment Agreement and the Articles of Association and also to describe how these options work in practice.},
  author       = {Gustafsson, Anna},
  keyword      = {Förmögenhetsrätt},
  language     = {swe},
  note         = {Student Paper},
  title        = {Buyouts - Så säkrar PE-bolaget sina intressen som majoritetsinvesterare},
  year         = {2011},
}