Limited Guaranty (Buyout) | Practical Law
A limited guaranty to be used in connection with a private equity buyout. This is a form of the guaranty (or "guarantee") provided by the private equity sponsor to a seller or target company and is drafted in favor of the sponsor. It guarantees the payment obligations of the buyer under an acquisition agreement, up to a negotiated limit. This Standard Document has integrated notes with important explanations and drafting and negotiating tips.