An essential component of a successful business is always to have one eye on development. Developing a business takes planning, innovation and finance. Here are some of the legal aspects to consider:
One option when looking to expand your business is to obtain further funding by borrowing money and securing the loan by way of a charge over property. In any instance, such an arrangement should be recorded in a formal legal document (a legal charge).
Another way to grow your business is to raise capital by selling more shares in it. You should always consider the rights which you want the new shareholder(s) to have, and it will be essential to have a Shareholder/Investor Agreement. Different classes of shares may be issued to reflect the different standing of shareholders within the company.
Intellectual property rights offer protection to the non-tangible assets of the company that involve intellectual development. Once the company has secured this protection (by way of trade marks, patents or registered design rights) intellectual property rights can be an invaluable source of income for a business. Intellectual property rights can be bought and sold as well as temporarily licenced to other users.
A common option for people wishing to expand their business is to set up franchises. Our Business Team can help draft the Franchise Agreement and assist with any negotiations.
You may decide the best way to develop your business is to acquire a competitor, or a complementary business. This may be done in the form of a Share Purchase, where you take over the company and everything in it, including potential liabilities, or an Asset Purchase where you just select what you want. Funding will be a key issue, as well as payment of the consideration.
For further information please contact our Business Team.