Investment is a risk by definition; that is why we consider it very important to manage at least controllable risks, like the legal ones.
Our lawyers have successful experience of legal support of both cross-border and Russian investment projects.
Legal support of international investment projects usually comprises the following stages:
1) conducting legal due diligence of the companies receiving and (where necessary) providing investments. The scope of due diligence includes corporate relations, executed agreements (including possible employee stock options), intellectual property, and other risks. Based on the results of such due diligence we prepare a report on the existing problems and business risks, as well as on possible solutions.
If you are an investor, it is feasible to conduct not only legal due diligence, but a full-scale due diligence of a company you are going to invest in. For that, you will need to engage technical, financial and other experts (depending on the particular project) that will give their respective opinions. Only after such a full-scale due diligence you can be sure that the product that is being developed is worth your investments.
2) analysing local laws with the involvement of (where necessary) lawyers from other jurisdictions.
3) drawing up a corporate structure of a new company (or companies) in line with the conditions of interest.
We design not only the investor’s relations with the business owner, but also those of the business owner with the involved experts, when without such experts the development of this business would be impossible or problematic. Various legal means are used to solve these issues; e.g., stock options and convertible bonds, and, in general, revision of company’s employment documents.
4) registering companies in foreign jurisdictions.
5) legal support of acquisition of assets, and drafting necessary documents, including agreements under English Law and US Law (Convertible note agreement, Restricted stock agreement),
6) representing clients in state authorities and institutions.
7) consulting clients in the course of and after the transaction closure.
Legal support of the investment process can include other stages, but in any case it must achieve its objectives: reaching transparency of business operations of the recipient company, retaining control over the situation by both parties, ensuring that the parties’ interests are secured.