n NISM Certifications
X NISM Series X
Medium

When a due diligence review uncovers issues with an investee company’s business plan, it can lead to the re-negotiation of the deal structure, including valuation and contractual terms, to reflect the revised assessment. Such re-negotiations are common to mitigate identified risks before finalizing the investment.

Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    The investment manager suing the investee company for damages

  2. B

    The term sheet being enforced on the investee company

  3. The term sheet deal structure being re-negotiated

    Correct answer

  4. D

    The agreement being canceled altogether

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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