The Legal Implications of External Stakeholders Tony Harper

Who are External Stakeholders in this context? Grant Providers Lenders Business Angels Venture Capitalists Investors in listed companies Accessing External Stakeholders

Why do you want additional funding? People? Equipment? R and D? To grow? To sustain what you already have? Be clear with yourself and external stakeholders

Due Diligence Assets:Owned, leased, borrowed? Intellectual Property:Owned, licensed, protected? Customers:Written contracts? Disputes:Outstanding? Common? Employees:Notice periods? Restrictive covenants? Confidentiality? Intellectual property? Insurance:Adequate covers: Norm for your sector IT:Maintenance Agreements? Disaster recovery plan? Source code? Adequate licenses Business Plan:Assumptions and sensitivities

The Ongoing Relationship Accountability Reporting Controls and Permission Investor involvement: -representative director? -customer relationship? -supplier relationship?

How will the relationship end? Eligibility? EIS and VCT status Further rounds of funding Sale or flotation Investor’s return

Tony Harper, Partner Telephone: Mobile:

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