Non Equity Agreements are at the base of every business.

The complexity of the agreements depends from several factors and those agreements are usually classified in two large groups:

• Business Partnership Agreements (BPAs)
• Technology Partnership Agreements (TPAs)

The big difference is that while the first is focused to develop the business of the partners the second is focused on developing the know-how.

Sometimes those agreements (especially the BPAs) are used to get the partners into confidentiality and may be the anticipation of a stronger partnership with equity (M&A or JVs).

Collis Dale senior management several times before an M&A operation completed BPAs between a buyer and seller of a Business. Those agreements that usually are one or two year long usually turn into an equity operation that can be an acquisition, a merger or a joint venture.

The majority of the agreements are currently BPAs but with the booming of the technological businesses there is a strong rising of  the TPAs. Given the fact that in this sector the knowledge is easily connected to an immaterial or a high-tech product, many times those agreements also prelude to a stronger equity partnership.