investment-term-negotiation

Vocabulary Word

Definition

Investment term negotiation is the process where the investors and investees discuss and decide on the terms of an investment agreement. It's a conversation step in investment where specifics about the investment: how much to invest, terms of the returns, rights, responsibilities and more are established.

Examples in Different Contexts

In Private Equity, 'investment term negotiation' focuses on setting the terms under which private equity firms will invest in a company, including the duration of the investment, management fees, and performance benchmarks. A private equity manager might discuss, 'During the investment term negotiation, we emphasized the importance of aligning our interests with those of the company for a successful partnership.'

Practice Scenarios

Business

Scenario:

We're receiving a lot of interest from venture capital firms. It's crucial to establish clear parameters as we proceed.

Response:

We must work on robust investment term negotiations to ensure the best outcome for all parties involved.

Technology

Scenario:

We want to ensure our technology remains proprietary while we get the funding. We are navigating this space carefully.

Response:

Let's engage experienced attorneys to guide us through the investment term negotiation. We want to protect our intellectual property.