The idiom ‘the devil is in the detail’ couldn’t be more fitting when it comes to negotiating an equity investment and the associated agreement – a document that can be vital to the effective operation, growth and success of the company.
The investment agreement deals with the subscription for shares by the investors in return for the investment monies, while outlining the framework for the relationship of the parties.
Any investor will want to ensure they are suitably protected and look to include a contractual right to prevent shareholders taking key decisions without their consent.
Enjoyed this? Read more from Nick Pickup, Forbes Solicitors