The Reportify – LiLing Poh, a Partner, and Aimee Khuong, an Associate, have discussed some valuable tips and tricks for early-stage companies in maintaining legal housekeeping before financing. This podcast features essential best practices to better prepare them for future rounds of finances.
In the podcast, the overall diligence process and what both companies and investors should expect have been highlighted. Issues that tend to arise during the diligence process have been shared, based on their experience representing both company-side and investor-side. This will help companies and investors be better prepared since being aware of possible issues that may arise helps one to avoid them or be prepared with solutions to tackle them.
Next steps to keep in mind have been shared once a term sheet is finalized. These steps serve as a guide to help businesses maintain a streamlined legal structure that will ensure their success.
It is essential for startups to maintain good legal housekeeping as failure to do so can lead to unnecessary expenses, slow down the financial process, or even impact the company’s growth. A well-organized legal structure can save time and money while protecting a company’s interests.
There are many legal processes to consider as a start-up, like contracts, securities, employment, and taxes. If it’s not done early, legal processes can become overwhelming and lead to legal consequences. Therefore, it’s crucial to have a keen understanding of legal requirements to avoid legal complications in the future.
The podcast emphasizes the importance of having a clear understanding of legal requirements and how to maintain an organized legal structure.
By following these best practices, startups can establish a seamless legal structure that benefits their business as a whole. It is important to keep these tips in mind to have a greater chance of success in the industry.
