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Getting Your Business Investor Ready – A Legal Perspective
March 2021

There may be a time in the life of your business when it needs to prepare itself for external investment. Perhaps you’ve already passed the startup stage and are now looking to scale up or you are a mid-size SME ready for growth.

You’ll have nailed your numbers, completed activities such as ‘SWOT’ analysis, perfected your projections, built up a business case, set a valuation and put it all together in a detailed business plan or pitch for investors.

Whilst all of these matters are critical, you should not forget to review your general business documentation from a legal perspective. An up-to-date and well-drafted set of constitutional documents and commercial contracts transmits a positive signal to investors.

Which key documents should you look at?

· Customer & supplier contracts

· Employment contracts

· Data protection policies

· Property documents such as leases and tenancy agreements

· Constitutional documents such as Companies House filings and articles of association

The state of a company’s documentation is a powerful indicator of the state of its underlying business. A potential investor will want to carry out extensive legal and financial due diligence on the business and well-crafted legal documents will instill confidence, ticking an important box.

In addition to the above, there may be other legal documentation that you need to review before presenting your business to an investor. Our corporate and commercial law team at Jolliffes can work with you to ensure your legal documentation is up-to-date, compliant and fit to present to potential investors during the course of any future due diligence they may carry out. Whether you require advice on a specific type of contract or a full legal audit before raising external finance, please call the team on 01244 310 022 for further advice.

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