This guide outlines how to resolve commercial disputes.<\/p>\n <\/div>\n \n\nDownload Now<\/a> <\/section>\n <\/div>\n\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n
What is a Consortium?<\/h2>\n\n\n\n
A consortium is a group of two or more members working together to achieve a common goal, such as funding a large project. Often, entities in a consortium pool their resources without merging in any other way. This means there is no change in ownership<\/a> for each individual business. Each company will remain separate. This differs from a merger or acquisition, where two companies typically combine to form a single entity. As a result, entities within a consortium maintain their independence.<\/p>\n\n\n\n In a finance context, consortiums usually occur when a company does not want to finance an entire project on its own. This can be for several reasons, including the following:<\/p>\n\n\n\n You are most likely to find businesses using consortiums in the context of private equity.<\/p>\n<\/div>\n\n\n\n Private equity houses use consortiums since they allow the firm to buy ownership stakes in larger target companies. Similarly, using a consortium structure is preferable for each investor as they:<\/p>\n\n\n\n Once it is clear that the consortium financing is going ahead, the parties to the deal will typically enter into a preliminary consortium agreement. This agreement covers issues including:<\/p>\n\n\n\n Once the consortium agreement passes, the parties to the agreement will sign a share purchase agreement. The share purchase agreement will outline their respective:<\/p>\n\n\n\n\n
\n Private Equity Consortiums<\/h2>\n\n\n\n
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\n Guide to Resolving UK Business Disputes<\/div>\n \n