Private equity and venture capital firms perform an invaluable service of connecting start-ups and emerging businesses with the resources they need to thrive. The decision to accept or grant funding is not without risk and should not be pursued without the benefit of sound legal representation. Companies seeking investments, along with those that are looking to invest, can both benefit from the prudent and knowledgeable counsel of SederLaw.
Our Experience Makes All The Difference
Any investments that are made in the business world, especially those involving large sums of money, will necessarily invoke risks. At the same time, these funding arrangements can impose duties on both parties and potentially put their rights and interests in jeopardy. If you have a pending private equity or venture capital deal, you deserve the dedication and skill of a law firm that is well-versed in the business aspects of your project.
You also need a firm that can handle all legal aspects of your funding plan. SederLaw’s attorneys draw upon multiple practice groups, such as Business & Corporate, Banking & Finance, Real Estate, Tax, and Employment, in advising private equity funds, portfolio companies, investors, start-ups, management teams, and many others. We provide creative, sophisticated, and client-focused solutions for structuring complex transactions in a cost-effective and efficient manner.
Importantly, we guide our clients at all phases of their endeavors, from fund formation and initial investments to later stage and follow-on investments. That’s the level of comprehensive legal service our clients have come to depend on, and which makes SederLaw a recognized leader in venture capital and private equity law.
SederLaw works with clients on both sides of private equity and venture capital funding transactions, including:
- Domestic and international funds
- Hedge funds
- Mezzanine funds
- Leveraged buyout funds
- Private investment funds
- Investors
- Entrepreneurs
- Seed-stage companies
- Technology companies
How We Help Our Clients With Our Private Equity And Venture Capital Serviices
Whether you are the company making or receiving the investment, SederLaw is prepared to represent and advocate for your interests from the moment you retain us. These are only a few of our private equity and venture capital legal services:
Fund formation and initial funding. We assist funds in addressing and resolving a wide array of challenges that arise during their formation. We also work with companies that are seeking to acquire funding by connecting them with both new and established investors and fund sponsors. More specifically, we provide legal advice regarding:
- Capital structuring to finance growth and operations
- Devising and adjusting vesting schedules
- Corporate structuring and ownership
- Fees and compensation terms
- Fund governance and internal procedures
Financing. An attorney can assist regardless of which side of the financing transaction you are on. For instance, startups often need legal counsel to guide them through a range of complicated legal matters that attend venture financing, such as understanding and agreeing to financing terms. On the other hand, if you’re an investor, your firm may need help developing a financing strategy that takes emerging market trends into account. We have experience with all types of financing, including senior and mezzanine financing, equity financing, seller financing, and more.
Counsel to emerging companies. New and emerging companies are often well-poised for growth but need the funding that venture capital and private equity firms can provide. However, investors expect and demand certain performance from these companies and may thereby exercise significant control over their operations. Emerging businesses need experienced counsel to advise them on the legal aspects of:
- Employment matters
- Corporate governance
- Executive compensation
- Public offerings
- Intellectual property
- Equity and debt financing
- Tax credits and government incentives
Legal audits. One specific need that emerging growth companies have is to prepare for the intense scrutiny that venture capital and private equity firms will employ before deciding whether to invest. This means reviewing the structure and operation of the business and identifying and correcting any problems. We conduct thorough and efficient legal audits so your business is prepared to impress investors.
Mergers and acquisitions (M&A). Private equity and venture capital firms play an outsized role in today’s M&A deals, but they run the risk of failing to adequately anticipate changing market conditions or closing deals which do not enhance the firm’s portfolio. Our team is prepared to advise your firm on the best strategies for completing these transactions, managing risk, and divesting assets that no longer have value.
Private placement offerings. The structure of every private placement offering is different and involves some combination of debt and equity that is suitable to the investors’ risk tolerance. For debt offerings, our services include evaluating the potential revenue stream of the target company and devising a strategy that will maximize returns. On the equity side, we assist investors with valuation as well as negotiating and acquiring suitable ownership rights which will protect their investment in the company.
Leveraged buyouts and recapitalizations. We represent investment groups in negotiating and documenting complex leveraged buyouts. We can also assist with recapitalizations, especially for private equity firms that are looking to use this strategy for refinancing purposes.
Follow-on investment advice. There are advantages and disadvantages to being a follow-on versus a lead investor. Nonetheless, there are also situations in which poor performance or market conditions create opportunities for follow-on investors to provide needed financing and thereby benefit from their investments. We counsel follow-on investors with respect to efficiently investing their capital and understanding and negotiating their equity positions.
Contact Our Worcester & Westborough Private Equity & Venture Capital Attorneys
The exact role that your venture capital and private equity attorney will play is dependent upon different factors such as the size of the fund, the nature of the emerging or start-up company, the financing needs of that company, and much more. For this reason, you need a customized legal strategy that will secure your investment and protect your rights. Count on SederLaw. Give us a call today to discuss your funding objectives.
SederLaw helps clients with private equity & venture capital legal needs in Worcester from their primary office as well as clients throughout MetroWest from their Westborough office.