Private Equity Placements are a key element of financial strategy for companies in Georgia seeking alternative growth sources without going public. This process involves the direct sale of company shares or interests to private investors, investment funds, or venture capitalists. The private equity market in Georgia is becoming increasingly attractive, especially in the technology, energy, and real estate sectors. Private placement allows a business to attract "smart capital," which implies not only finances but also the investor's experience, connections, and modern management standards. However, such transactions are characterized by high complexity and require detailed legal regulation to avoid conflicts between owners. The Legal.ge platform offers access to experienced lawyers specializing in private equity transactions and corporate law.
What does the Private Equity Placements service cover?
Legal services related to private equity placements cover the full cycle of the transaction and ensure a balance of the parties' interests. The service includes: selecting the investment structure (direct investment, convertible loan, preferred shares); conducting legal Due Diligence for the issuing company; preparing the agreement on main terms (Term Sheet); drafting the share purchase agreement (SPA); preparing the Shareholders' Agreement (SHA) that regulates voting rights, dividends, and exit strategies; compliance with requirements of the Law on Securities Market (private placement exemptions); and registering corporate changes in the public registry. Lawyers also provide negotiation support, which is critical when agreeing on company valuation and control mechanisms.