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Bought out deals :

Presented By
KESHAV YOGI
210101040012
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INDEX

 Introduction
 Features
 Advantages
 Disadvantages
 Bought out deal process
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Introduction

Bought out deals is a process of investment by sponsors or

syndicate of investors/sponsors directly in a company . Such
direct investment is being made with an understanding
between the company and the sponsor to go for public
offering in mutually agreed time. Bought out deals, as the
very name suggest is a type of wholesale of equities by the
company.
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 PARTIES
 OUTRIGHT SALE
 SYNDICATE
 SALE PRICE
Features of Bought  FUND BASED
out deals  LISTING
 OTCEI
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Advantages

 Speedy sale : The bought out deals offers a mechanism for speedy sale of
securities involving lower issuing cost.
 Freedom : The bought out deals offer freedom for promoters to set a realistic
price and negotiate the same with sponser.
 Investor protection : the bought out deals facilitates better investor protection
as the sponsor are rigorously evaluated and appraised by the promoters before
off loading the issue.
 Quality offer : The bought out deal helps in improving the quality flotation and
the primary market offeing.
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Disdvantages

 Sponsors may take control over the company as they own large numbers of
shares.
 When market are sponsors may incur losses.
 Risk of inside trading is high.
 Sponsors can make large profits at expense of small investment.
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Bought out deal process

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