The private equity investment process

Getting private equity investment from an investor that is either an institution or a sophisticated investor is gold dust for start-ups. Investment from an investor with knowledge or expertise in your business idea is a great validation of your business. Although it does not mean that your idea will be a success it does help to boost confidence in your idea. Outside investment from a sophisticated investor demonstrates that you are not alone in believing in your value proposition. However, preparing your business for a private equity investment is not straight forward if you have not been through the process before.

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Life cycle of a digital tech business: how to take your start-up to corporate success?

The author Peter Adediran is a UK qualified and fully licensed current practising solicitor specialising in mobile applications and ecommerce related B2B and B2B2C start-ups and later stage SME growth. His areas of expertise include using intellectual property to add to business value, and drafting growth and exit focused commercial agreements. His breadth of experience over 18 years includes more than a 100 start-ups worth over $100 million

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Brexit – UK’s Internet legal landscape following EU exit

The following article is a high level view of the consequences of Brexit from a legal perspective as it relates to Internet related business.

At the outset there is only one thing for certain and that is that the legal position after Brexit does not have to be uncertain. Indeed, it is possible to extrapolate which laws will fall away and what will be left in place as this will largely depend on what type of post-Brexit model is adopted by the UK. With this in mind the background position regarding Brexit so far is as follows.

The EU is governed by (1) The Treaty of the European Union (TEU); and (2) The Treaty on the Functioning of the European Union (TFEU) (the “EU Treaties”). The referendum does not mean that the UK has automatically left the EU. Article 50 of the TEU sets out the necessary mechanisms for the UK’s departure. It provides that:

i) A Member State may leave within two years of notifying the European Council (the Council) of its intention to withdraw from the EU. There is a negotiation process for the withdrawal and future working relationship with the EU Art 50(2)(b);

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Loan agreements

We receive several enquiries a week regarding disputes relating to loan agreements between individuals, individuals with companies and companies lending to companies. In virtually all enquiries, the dispute centres on repayment of all or part of the loan. This article sets out nine tips when raising finance by way of a loan. It is just a heads up that getting a loan agreement right is not that simple. If you follow these nine tips you can avoid bitter disputes regarding repayment. The focus is primarily on a private company raising debt finance secured on its shares but some of the tips concern loans generally.

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Enterprise Investment Schemes

Enterprise Investment Schemes – a basic guide is an article to explain the variety of generous income and capital gains tax reliefs to investors on the issue of new shares in small rapid growth unquoted stocks.

This article is – Enterprise Investment Schemes – A Basic Guide – therefore it is not a detailed analyses of the various schemes and tax breaks, for that you need to get professional advice. It seeks to give a basic understanding of the EIS and only covers shares issued on or after 06 April 2009 up to 2014. Additionally, you should be aware that the rules for EIS are subject to change so professional advice is required for the latest applicable reliefs and legislation.

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Private equity investment

Private equity investment is where a company seeks to bring in new outside investors by issuing new shares. Note that this is different from a transfer of existing shares. The procedure is called an allotment of shares. This is because there is first a letter from the proposed investor applying to buy the shares. The shares are then “allotted” or “allocated” to that shareholder. When the investor’s details are entered into the register of members they are issued with the shares and are shareholders. They then get a share certificate.

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