Deal Negotiation and the Deal Agreement
The golden rule is: âhe who has the gold makes the rulesâ.
âKeith David
Introduction
This chapter examines the deal agreementâidentified as the final stage of the investment deal process, as presented earlier in Figure 4.1. Before the deal agreement is finalized, the entrepreneur and investor will usually enter into negotiation over the terms and conditions of the deal.
An investment deal agreement is structured to adhere to the investorâs expected return on investment and to mitigate some of the different types of risk exposure common in private equity investing and also related to early-stage ventures. Different provisions in the deal agreement are also designed to reduce potential ...
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