Preparing for Investment – How Organized are your Corporate Documents?

By: Jeremy Siegel

Whether you’re approaching your first round (or third round) of venture capital fundraising, or you’re starting to think about a potential exit event or acquisition, approaching large-scale business transactions such as these can have you feeling apprehensive. You may be concerned about your valuation, how to structure the deal, and how to best protect your employees’ interests. Take solace in knowing there are some simple, organizational steps you can take to make the future transaction less stressful in the long run.

Before you seek a new round of financing or start putting feelers out for a potential sale or acquisition here are some things to keep in mind:

• Make sure that all Stock transfers or membership interest transfers are fully executed. 
• Ensure that all Stock options have corresponding stock option plans. 
• Explicitly name each document and make the contents of that document match. 

Morse’s Corporate Associate, Jeremy Siegel, provides more information about preparing for a corporate financial transaction here.