Investment Agreement Our focus is to provide pragmatic advice with clarity on level of legal documents suitable on how to position your corporate structure for an investment. ”
In today’s technologically advanced market place with a number of opportunities for investment, we understand that you need flexible and practical advice to maximise from potential investment opportunities.
Our focus is to provide pragmatic advice with clarity on level of legal documents suitable on how to position your corporate structure for an investment.
Ashton Birch Investment Agreement Solicitors are experienced supporting start-ups, companies, and investors on investment at various stages of growth in their corporate journey. Please contact us to discuss your requirements and to explore workable solutions.
Investments can take many forms and documents will reflect the type and level of investment within an agreed corporate structure.
In some examples, for an early start up with a couple of investments, a shareholder’s agreement, considering minority shareholders rights with control and protection of investor, and amended articles could be a cost effective approach. However, for a company that has been trading, it will be difficult to amend existing articles whilst existing numbers of other investors and shareholders in the company. In such circumstances, it would be beneficial to put in place an Investment Agreement, incorporating terms of subscription. Structuring a suitable Investment Agreement may vary on the advantages.
There are a number of options for investors and companies with rights attached to the options to offer security to investments, some of which include investment in return for shares, preference shares, convertible loan notes or debt finance.
Prior to entering a typical Investment Agreement, it is worth considering conducting a due diligence exercise. In IP and technology based companies, a comprehensive IP due diligence must be conducted. As each Investment Agreement shall reflect individual circumstances of parties, some common points to consider including in the investment agreement shall be those that require specific investor approval, issues that require protection and exercise control, information rights, warranties, dividend policy, new investments, dilution, dispute resolution and exist strategy.
The company accepting investment, should consider protecting its trade secrets and confidential information, and conditions should investors invest in competing businesses. It must consider putting in place Heads of Terms for an investment which can assist the entire investment process.
Ashton Birch Investment Agreement Solicitors will be happy to discuss your individual requirements and provide tailored solutions. Please contact us for a confidential discussion.