Document background
The Private Equity Purchase Agreement is a sophisticated transaction document used in Australian private equity investments for acquiring controlling interests in private companies. It serves as the primary agreement between the selling shareholders and the private equity purchaser, typically structured through a special purpose vehicle. The agreement is designed to address the specific requirements of Australian corporate and securities laws while incorporating market-standard private equity provisions. It includes detailed sections on purchase price calculations, extensive warranty protection, pre-completion covenants, and completion mechanics. The document is particularly important in regulated industries where additional compliance requirements may apply and often involves interaction with other transaction documents such as management agreements and financing arrangements. Its use is essential in transactions requiring FIRB approval or ACCC clearance.
