Investment appeals to businesses for a wide range of reasons. For investors, it presents the opportunity to secure a return on capital in a tax efficient manner. For investee companies, it is primarily a fundraising mechanism, and can also provide access to external expertise and support.
“Investment” can encompass a broad range of activities. This guide focuses on equity investment, meaning a subscription for or purchase of shares in a company. It aims to address the following:
- advantages of investment;
- types of investor;
- stages of investment;
- key investment documentation;
- ancillary documentation and timeline; and
- key commercial terms.
This guide is intended to outline the main legal principles that any party entering into an investment will need to consider. Specific advice should be taken when structuring, documenting and implementing an investment to ensure that the commercial, legal, regulatory and tax objectives of the relevant parties are met.
You can view the guide by clicking here or the image below.
This publication is a general summary of the law. It should not replace legal advice tailored to your specific circumstances.
© Farrer & Co LLP, January 2021