Private equity investors can become involved in a company at any stage of its lifecycle. This could be during the early stages as a start-up to raise essential capital, or later on to support planned growth and expansion into new markets. Introducing an investor into your business typically affects the balance of power within the company, as many investors will seek some form of equity return in exchange for their investment. This might involve the allotment or transfer of shares to the investor, which often come with voting rights and/or dividend rights, thereby diluting the existing shareholders’ voting power. Common Mistakes in Private Equity Deals Key Considerations Before Engaging with a Potential Investor Before starting discussions with a potential investor, it is advisable to enter into a confidentiality agreement, or non-disclosure agreement, to protect any commercially sensitive information shared during … Continue reading →

If you run a business as two or more partners, having a written partnership agreement is critical. This legally binding document outlines how your business operates and protects all partners from disputes and unforeseen challenges. But why is it essential, and what should be included to ensure your business is protected? The Importance of a Business Partnership Agreement In today’s ever-evolving world, businesses face increasing pressures, from regulatory changes to resource constraints. A robust written partnership agreement provides the clarity and structure needed to avoid disputes and ensure the smooth running of the business. Without a written partnership agreement, your business may default to being governed by the outdated Partnership Act 1890. This legislation offers only modest protection to modern business partnerships and can expose your business to unnecessary risks. For example: A bespoke partnership agreement mitigates these risks and … Continue reading →