Financial buy-outs : structuring the deal and sweet equity

This comprehensive article is the first in a series of three articles that will thoroughly review financial buy-outs in Belgian practice, namely acquisitions of mature companies initiated by financial buyers. The scope of the analysis will include leveraged buy-out and management buy-out deals. This article specifically covers sweet equity structuring in Belgian practice. The issue is addressed systematically, focusing on the legal, financial and tax challenges that investors, fund managers, bankers and entrepreneurs face in a Belgian buy-out deal. A great deal of relevance is given to the practical perspective, based on a case study inspired by an actual buy-out carried out on the Belgian market.