When dealing with investors and looking for investment for your business or your next big idea, the following practical tips can help you to avoid legal pitfalls and to steer clear of any long-term legal problems:-
1. Ensure you’re making the right deal
You’ll already know your business inside out, but you need to think carefully about how much investment your business will need and how what your exit strategy is going to be.
2. Focus on the detail in your legal agreements
Once you have a great deal in place verbally, ensure it’s agreed in writing, ideally with commercial legal advice, for example in respect of a shareholders’ agreement or other binding legal agreement that will govern the deal.
3. Consider if there needs to be security over the investment
With certain investments, a loan may be part of the deal. If so, a security may need to be provided by the company in respect of relevant assets or perhaps by shareholders over their shares. Business owners and entrepreneurs should seek to establish at an early stage whether such security is going to be required to prevent further legal issues in future.
4. Check your intellectual property rights
Intellectual property rights (IP rights or ‘IPR’) are crucial for many businesses, particularly those in their early stages. As part of their due diligence, investors will want to ensure that the business has ownership of the relevant IPR and if anyone has contributed to creating intellectual property for the business investors will want to see relevant intellectual property assignment agreements that exist that assign relevant IP rights. In addition, investors will want to know that your intellectual property rights aren’t infringing on the rights of others (i.e. third party intellectual property rights). This is important as the investor will not want to make an investment then increase their risk of future litigation from infringement of the IP of others.
HULT Private Capital – Exclusive Top Tier Investment Portfolios for High Net-Worth Sophisticated Investors
At HULT Private Capital, we have an excellent track record in providing investment solutions for clients across the world. With an exclusive approach to investing, we assure that your capital is robustly grown and secure within structured investment facilities.
With exclusive top tier investment portfolios for high net-worth and sophisticated investors, we have many years of experience in providing structured planning and robust investments as a winning combination to success.
Through our Private Equity offering, we connect advisors and the best experts to a range of investments with various partner companies. We ensure that projects are successful from start to finish, including those in respect of acquisition, property investments & development.
In order to achieve the best results, you need the best investment team and the right investments for you. At HULT Private Capital, we introduce a range of fixed bank guaranteed, property and asset backed investments, with a comprehensive analysis being undertaken from the outset to ensure that the investment you select aligns with your goals, your objectives and your financial advisor.
Disclaimer – This is information – not financial advice
The content and materials featured or linked to on this site are for your information and education only and are not attended to address your particular personal requirements.
The information does not constitute financial advice or recommendation and should not be considered as such. This site is not regulated by the Financial Conduct Authority (FCA), it’s authors are not financial advisors and it is therefore not authorised to offer financial advice.
Do your own research and seek independent advice when required
Always do your own research and seek independent financial advice when required. Any arrangement made between you and any third party named or linked to from the site is at your sole risk and responsibility. This site and its associated writers assume no liability for your actions.
Investing carries risks
The value of investments and any income derived from them can fall as well as rise and you may not get back the original amount you invested.
12+ years sharing great legal advice
