Top 10 Considerations When Negotiating a Minority Interest Investment in a Hospitality Enterprise
With valuations for hospitality enterprises becoming more attractive to investors, many expect private equity investments to increase in 2010. Many of these transactions will result in investors holding a minority interest. Summarized in this post are some of the more important considerations for these types of investments, including:
- Governance and voting
- Preferred distribution rights
- Regulatory considerations
- Redemption rights
- Registration rights
- IPO participation right
- Preemptive rights
- Antidilution protection
- Co-sale rights
- Drag-along rights
