Private equity & venture capital

The terms of an investment will depend on the specifics of the transaction and the investor’s approach. Getting the structure right is crucial to ensuring a successful partnership. Securing investment is a significant step in any business’s journey, whether it’s to fuel growth, support a management buyout, or provide an exit strategy for existing shareholders. The right investment structure can unlock new opportunities, but it also comes with legal and financial complexities.

Investment can take various forms, depending on the stage and goals of a business.
Venture capital is typically aimed at early-stage or high-growth companies, providing funding to fuel expansion and development. Investments can be purely in share capital or a mix of equity and debt financing.

Private equity generally involves investing in established, cash-generating businesses, often to fund a management buyout or allow existing shareholders to cash in on their share value. Private equity deals usually combine equity investment with debt financing from a bank or the investor itself.

Understanding the implications of equity and debt financing, investor control, and protection measures is crucial to ensuring a successful outcome.

3 key legal considerations for businesses seeking investment

1. How much control are you willing to give up?

The level of control an investor receives will depend on the deal structure, but it’s important to set boundaries from the outset. Whether you’re comfortable with a hands-on investor or prefer to retain decision-making power, we’ll help ensure the terms align with your goals.

2. Are you looking for equity or debt funding?

Investment can come in different forms - equity (where the investor takes a stake in your business), debt (a loan that must be repaid), or a combination of both. The structure of the deal impacts everything from company ownership to repayment obligations. We’ll guide you through the options, so you fully understand the implications.

3. Do you have an up-to-date share capital table?

An accurate and detailed share capital table is essential for investors. If your records aren’t up to date, it can delay the investment process and increase costs. We can help ensure your company’s share structure is properly documented to avoid unnecessary setbacks.

Why choose 3volution?

At 3volution, we take a pragmatic, commercial approach to private equity and venture capital investments. We understand that each transaction is unique, and we focus on structuring deals that protect your interests, while working towards long-term success. Whether you’re a business seeking investment or an investor looking to secure the right opportunities, our experienced team will provide clear, strategic advice tailored to your needs.

From due diligence and contract negotiation to shareholder agreements and investment protections, we handle the legal complexities so you can focus on achieving your goals.

If you are considering private equity or venture capital investment, the right legal support makes all the difference. Get in touch to discuss how we can help you navigate the process with confidence using the form below.

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3 key legal considerations for investors

1. What level of control do you expect?

Your level of control will depend on the size of your investment. If you’re taking a minority stake, you may want specific protections without interfering in daily operations. If you’re acquiring a larger share, more control may be necessary to safeguard your investment. We’ll help structure the deal so that you have the right balance of control and protection.

2. What are the company’s most valuable assets, and are they protected?

Before investing, it’s crucial to identify the key drivers of the business’s success - whether that’s intellectual property, contracts, or customer relationships - and ensure they are adequately safeguarded. A focused due diligence process can highlight any gaps, and we can advise on how to resolve them.

3. How do you want to protect your investment?

There are various ways to secure your investment, including: - Priority rights over dividends or sale proceeds - Security arrangements to protect against financial loss - Protective clauses in the transaction documents We will structure the deal to give you the protection you need.

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Private equity & venture capital

3 key legal considerations for businesses seeking investment

1. How much control are you willing to give up?

2. Are you looking for equity or debt funding?

3. Do you have an up-to-date share capital table?

Why choose 3volution?

3 key legal considerations for investors

1. What level of control do you expect?

2. What are the company’s most valuable assets, and are they protected?

3. How do you want to protect your investment?

Meet our friendly team

Jonathan Priestley

Emma Tomkins

Emily Curtis

Ellie Banks

Dominic Belcher

Chris Kelly

Get In Touch