Term Sheets – are they worth the bother?

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Equity investors and other financiers typically seek agreement on a term sheet early on in the investment process, prior to undertaking detailed due diligence. A company seeking funding or a founder seeking investment partners for a project or other venture might also issue a term sheet to potential investors or funders. Indeed, a term sheet […]

Shareholders’ agreement – do you need one and who will it benefit?

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INTRODUCTION If you are establishing a company with other shareholders or investing in an existing company, the conventional wisdom is that you should have a shareholders’ agreement. But is that always advisable and do the benefits justify the costs? While a shareholders’ agreement can offer generic benefits to all shareholders by providing more certainty and […]

It’s no time to be shy when negotiating investment terms

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It is a tough time to raise capital. Debt availability is tight and inaccessible for many, while equity investors are very cautious. Those equity investors prepared to invest are naturally looking to do so at lower valuations than applied in the good times, valuations which reflect current depressed earnings and lower earnings multiples. For existing […]

The company or the assets?

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Once the decision to sell or buy a business owned by a company has been made, the next most fundamental question is whether to sell or buy company shares or business assets.A sale of shares is the simplest and most efficient way of transferring the full benefit of a company’s business, but it also entails […]