Corporate Lawyer Breaks Down Succession Business Deals | WIRED
WIRED・1 minute read
Kendall considers acquiring Vaulter for Waystar's digital media pivot, negotiating terms and seeking investment to address financial challenges amid a vote of no confidence against Logan, resulting in board upheaval.
Insights
- The acquisition of vaulter by Waystar involves intricate negotiations, including financial terms and strategies like offering more money, a board seat, and ensuring the company's independence post-acquisition.
- Loan covenants, crucial conditions tied to Logan's secured loan, have significant implications on repayment terms, especially during economic downturns like the COVID-19 pandemic. This leads to Kendall seeking private equity investment from Stewie to address the loan repayment, involving stock, voting rights, and a board seat.
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Recent questions
How does Kendall plan to pivot Waystar into digital media?
By acquiring vaulter, a social media company.
What are some ways to sweeten a deal in negotiations?
Offer more money, a board seat, and ensure company independence.
How does Logan secure a loan for Waystar?
Using his family's stock as collateral.
What are loan covenants and why are they important?
Crucial conditions affecting loan terms, renegotiated during economic downturns.
How does Kendall address loan repayment with private equity investment?
Seeking private equity investment from Stewie involving stock, voting rights, and a board seat.
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Summary
00:00
"Kendall's Acquisition Plans and Loan Negotiations"
- Kendall explores acquiring vaulter, a social media company, to help Waystar pivot into the digital media space.
- Negotiations for the acquisition involve determining the deal's financial terms, with Kendall having a sense of negotiation leeway.
- Ways to sweeten a deal include offering more money, a board seat, and ensuring the company's independence post-acquisition.
- Logan secures a loan with his family's stock as collateral, with a condition tied to the stock's value affecting loan repayment.
- Loan covenants are crucial conditions affecting loan terms, often renegotiated during economic downturns like the COVID-19 pandemic.
- Kendall seeks private equity investment from Stewie to address the loan repayment, involving stock, voting rights, and a board seat.
- A vote of no confidence is proposed against Logan, leading to a board meeting where Kendall's lack of support becomes evident, resulting in board members being fired.
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