Deal Structuring: An Investor’s Guide to Better Deals

By Magnus Kjøller

I'm certainly not a master of negotiations. Yet, I often find that I get what I want in a deal. This does not come from slick-talking but from years of experience in structuring deals effectively. Understanding the right way to set up a deal can help you skip a good amount of back-and-forth bargaining. Many people focus on the negotiation side, yet only very few really delve into the intricacies of the deal structuring itself. It's always puzzled me and it's what sparked me to write this book. Think of deal structuring as your toolkit. If I were to ask you to build a house but only provided a saw, a hammer, and some boards and nails, you'd likely end up with a rather shabby-looking home. But, if you were equipped with a full range of tools, knowledge, and materials, you'd construct something far superior. In this book, you will, amongst other things such as fundamental knowledge about the structures and deal process, find 19 Proven Deal Models: Uncover various tested and effective models, providing you with versatile frameworks to structure any deal. 37 Key Elements of Deal Nuances: Learn about the critical elements that add depth and complexity to deal structuring, ensuring you're well-equipped to handle intricate negotiations. 31 Actionable Clauses for Your Term Sheet: Equip yourself with a comprehensive set of practical clauses, ready to be implemented in your term sheets, enhancing their effectiveness and precision. Consider deal structuring through this lens: the more tools you have, the better your negotiation outcomes can be. Deal structuring is all about crafting the terms of an agreement to suit everyone involved--business owners, investors, and lenders alike. By better understanding deal structuring, you can negotiate more favourable terms, reduce risks, and increase the transaction's value. When I first started investing in companies, I did what most do: I found something I liked and offered a sum of money for a percentage of a company. It was the "You get X money and I get Y% ownership" way. It was a simplistic approach. Twenty years and sixty investments later, I've learned that there are many other ways to structure deals that can be beneficial for you as an investor and your counterpart too. My background is originally as an entrepreneur, and in the past, I have profited well from my ventures. I've since moved to the other side of the table and set up an investment firm akin to a family office. Today, we are a small team of eight people at the investment firm, Kjøller. Whenever we talk to startups or established businesses looking for funding, we always try to identify the company's needs and how we can align them with our investment principles, using the models, tools, and elements outlined in this book. Within these pages of this book, I've distilled what I've learned over the years. It's akin to a cookbook but for transactions, filled with recipes and pointers for forging superior deals. The book aims to deliver insights into the aspects of deal structuring, coupled with actionable advice on creating equitable and sensible deals. It delves into various deal types, the elements that influence deal structures, and the techniques for finalising terms. While my perspective is rooted in that of an investor, entrepreneurs, startup founders, and business owners alike will find this book quite beneficial as well, as it gives insight into the thinking of an investor. Whether you're an experienced professional or a newcomer to investment and deal structuring, this book should arm you with the insights and abilities to manoeuvre through the transaction process.

• Format: Hardcover
• Language: English
• ISBN: B0CNGYYKQM
• ISBN13: 9798867808020
• Release Date: November 2023
• Publisher: Independently published
• Length: 257 Pages
• Weight: 1.00 lbs.
• Dimensions: 9.0" x 0.8" x 6.0"