3 Steps to Receiving Investment In Your Business

Thrings have a huge amount of useful guides available to download on all sorts of topics. This time, we take a peek inside '3 Steps to Receiving Investment in Your Business'. Read on to read a sample, and click the link at the bottom to download the full Guide for free!

Receiving investment in your business – whether for the first time or not – is a significant step both for your business and you. The procedure for taking investment has significant legal implications, so it’s important to understand its impact on your business. Here, we outline three key steps in the investment process when bringing an investor on board.

DUE DILIGENCE

A prospective investor will usually want to review all aspects of your business. Due diligence provides their first opportunity to obtain detailed information and requires you to provide in-depth replies and supporting documents. These replies should be carefully considered with your solicitors to ensure you and your fellow shareholders are not exposed to future claims by the investor. Before providing any sensitive information, a non-disclosure agreement should be signed by the investor.

As well as legal due diligence, a financial due diligence exercise will often be carried out simultaneously which can place large demands on your senior management, who will of course need to continue running the business. It is important that your business is ready for the due diligence exercise; knowing your business and maintaining all relevant information in good order will assist you with the process and present a strong proposition to the investor. It is also important to keep your business plan under review and update it at regular intervals.

For more information about INVESTMENT AGREEMENTS and DISCLOUSIRE LETTERS download the full Guide below.

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