signing definitive legal agreements In addition, often unlike a strategic will usually take 8-12 weeks, with buyer, from the outset a PE buyer closing of the transaction either at will be considering their exit (which the same time or some time after if will typically occur within five years there are closing conditions (such of the acquisition). This mindset is a as regulatory approvals). defining feature of a PE buy-out and will influence the structure of the deal Types of buyer and what contractual protections will The nature of any potential buyer be demanded. can have a significant impact on The documentation and structure of the shape, structure, and speed PE deals will often be very technical, of a deal. In the context of gaming involving complex acquisition debt M&A deals, the most common and equity holding structures and types of buyers have tended to detailed governance arrangements. be private equity (PE) funds and It may seem that the buyer is looking strategic corporates. to control the business, but that’s almost never the case; they’ll prefer Private equity (PE) funds to leave the management team Similar to VC funds, PE funds are to run the business day-to-day. vehicles which pool capital from However, they are very focused financial investors. Their main on ensuring a sufficient level of purpose is to make acquisitions protection for their investment. (especially of more established As mentioned, a PE buyer will be late-stage businesses), help build looking at an exit within a few years and grow them, and then sell them when it acquires the business. It will for significant profit. This means that have very ambitious growth plans for PE funds can often move faster than the business during that time and will strategic corporates due to their depend on the management team to streamlined systems. achieve this. Founder sellers should be clear that a sale to private equity is not therefore an immediate exit. 18