An investor, a business angel or a strategic partner wants to take a stake in your company; or key people are to be given a share in the company.
What matters now
- The term sheet already sets the course, even if it is described as non-binding.
- Besides the valuation, the rights matter: liquidation preference, tag-along and drag-along rights, consent requirements, anti-dilution protection, vesting.
- Rights in software, trademarks and know-how should lie cleanly with the company before the investor comes in.
- The shareholder agreement must fit the articles of association; contradictions lead to disputes later.
- Employee participation can be structured as real or virtual shares, with different consequences.
Documents I need
- term sheet or offer from the investor
- articles of association and list of shareholders
- existing agreements between the shareholders
- an overview of IP rights and key contracts
Next steps
Send me the documents by email to kanzlei@bauer.legal or use the appointment request, and mention any deadline that is running. I usually reply within one working day and let you know how things can proceed. You can write to me in English or German. How we work together and how fees are charged is explained under How we work together.
More: Company law.
This page gives a general overview of German law and does not replace advice on the individual case.