Bought Deals: The Right Questions to Ask Checklist

Summary

The questions provided here are intended to assist parties in structuring, launching, and closing either a primary or a secondary bought deal. In a bought deal, the underwriter(s) agree to purchase all of the securities being offered by the issuer (or selling shareholders) after conducting, at most, limited pre-marketing activities. As a result, bought deals are conducted on a very accelerated timeframe (often overnight), and the issuer, the underwriter(s), and their respective counsel may have very little time to prepare, launch, and close the transaction. Practitioners should consider these questions to help ensure that the transaction runs smoothly.