Canadian Private Equity Transactions: A Review

What different types of private equity transactions occur in your jurisdiction? What structures are commonly used in private equity investments and acquisitions?

The most common types of private equity transactions include leveraged buyouts, often in conjunction with the participation of management. These transactions could be structured as a takeover bid, court-approved plan of arrangement, amalgamation or asset sale. Depending on the circumstances, private equity firms will also occasionally take minority positions in companies or invest in the debt of a company with a view to taking a larger equity stake under conditions that are favourable to the private equity firm.

Once invested, private equity firms will often engage in a follow-on investment to facilitate further growth of the business or an acquisition, or to improve a weakening balance sheet. Private equity firms will also often recapitalise the business after a period of time by releveraging the company