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Private Equity & Venture Capital SPECIAL HANDS FOR CORPORATE GOVERNANCE & FINANCE

Exercise of Option

Well-Drafted Investment Agreement and Timely-Exercised Options – A Must for Exit Strategy

Exercise
of
Option

When it is not feasible to make return through IPO or M&A, the investor should look for other ways to get theirs investment back. There may be rights set forth in the agreement or in the relevant rules and regulations which allows the investors to demand return of their investment but determining whether the rights are exercisable under the applicable laws, what the conditions are and at what point the rights should be exercised to maximize the return is not an easy task.

EHoo’s professionals can review the investment agreements and applicable laws and provide thorough analysis of legal issues with respect to exercisable rights, and appropriate timing for the exercise of rights, based on their experience with numerous cases and transactions.