Employment Law
Investment
Our client was raising money form investors. They were not aware that the terms of the deal that they had been offered meant that if they did not meet the forecast that they had provided to the investor they would lose control of their business. This was a particular risk because the business was at an early stage and therefore forecasts could easily be out.
We renegotiated the terms of the investment so that our client still was able to take on the business but they would not lose any shares based on performance.
Result: The business has grown from the investment and the founders have retained their controlling interest in the business even though some forecasts have not been met.
Shareholder Structure
Our client came to us needing to sort out a difficult shareholder issue where one party had invested a lot more into the business which was causing friction and jeopardising the business.
We worked with both parties to mediate a resolution and put in place a structure between the parties to deal with the issue on an ongoing basis.
Result: The business relationship has remained positive since putting the structure in place and the business is flourishing.