Can someone please review these answers (limit 100 words)?
Note: I am applying for a Trainee Associate position in a corporate law firm.
1. WHAT ARE THE KEY DIFFERENCES BETWEEN A SHARE PURCHASE AGREEMENT AND A SHAREHOLDERS’ AGREEMENT?
- SPA is entered in between the Seller and Buyer of the shares and outlines the particulars as to the quantum and price of the shares. SHA is entered in between a company and the shareholders. It outlines the rights and duties of both parties.
2. WHAT ARE THE DIFFERENT MODES THROUGH WHICH OVERSEAS FUNDING CAN BE RAISED BY AN INDIAN COMPANY?
- Two sources of overseas funding are Equity and Debt. Equity Funding can be raised either through FDI/FPI/FVCI route and Debt Funding can be raised via Loans/Borrowings (ECB) or Debt Instruments per the FEM (DI) Regulations, 2019.
3. IN AN ACQUISITION, WOULD YOU CONSIDER THE EQUITY VALUE OR ENTERPRISE VALUE OF THE COMPANY? WHY?
- The enterprise value is the net cost of acquiring the firm's equity, paying off all debt, and receiving cash. It is the same as owning a non-levered company. Therefore, the enterprise model is a more appropriate choice when valuing a business. or
- Enterprise model allows avoiding the difficulties associated with estimating the impact of the firm’s borrowing decisions on earnings (as the case with the equity model). Therefore, the enterprise model is a more appropriate choice when valuing an entire business, as such is the case in acquisition.
4. Describe a Law or a Judgement that has influenced you as an Advocate? (elaborate your answer in 75- 100 words)
- I am not sure how to approach this question.
Note: I am applying for a Trainee Associate position in a corporate law firm.
1. WHAT ARE THE KEY DIFFERENCES BETWEEN A SHARE PURCHASE AGREEMENT AND A SHAREHOLDERS’ AGREEMENT?
- SPA is entered in between the Seller and Buyer of the shares and outlines the particulars as to the quantum and price of the shares. SHA is entered in between a company and the shareholders. It outlines the rights and duties of both parties.
2. WHAT ARE THE DIFFERENT MODES THROUGH WHICH OVERSEAS FUNDING CAN BE RAISED BY AN INDIAN COMPANY?
- Two sources of overseas funding are Equity and Debt. Equity Funding can be raised either through FDI/FPI/FVCI route and Debt Funding can be raised via Loans/Borrowings (ECB) or Debt Instruments per the FEM (DI) Regulations, 2019.
3. IN AN ACQUISITION, WOULD YOU CONSIDER THE EQUITY VALUE OR ENTERPRISE VALUE OF THE COMPANY? WHY?
- The enterprise value is the net cost of acquiring the firm's equity, paying off all debt, and receiving cash. It is the same as owning a non-levered company. Therefore, the enterprise model is a more appropriate choice when valuing a business. or
- Enterprise model allows avoiding the difficulties associated with estimating the impact of the firm’s borrowing decisions on earnings (as the case with the equity model). Therefore, the enterprise model is a more appropriate choice when valuing an entire business, as such is the case in acquisition.
4. Describe a Law or a Judgement that has influenced you as an Advocate? (elaborate your answer in 75- 100 words)
- I am not sure how to approach this question.
