Transactional

Start-ups need external funding or capital to hire bettertalent, have a robust R&D wing, and expand to different locations/segments. Startups can raise funding from different sources such as angel investors, venture capital firms, banks, accelerators, etc. The entire process of raising funds is extremely tedious and complicated. We have a dedicated team that caters to the founders and investors throughout their journey from enteringthe business to multi-fold growth. Our lawyers regularly assist the startups in fund formation, due diligence, drafting and negotiation of transaction documents, and executing the deal. Further, we bring in-depth expertise to advise other transactions such as mergers, acquisitions, share-swaps, buybacks, etc. We also understand the entire process of transactions might be complicated for clients. Hence, the team also assists in all the regulatory filings/applications required for a transaction.


  • Assistance with the share structure, board of directors, appointment of key management, etc.
  • Assistance with due diligence activities.
  • Evaluation of alternative business forms.
  • Customizing the co-founders' agreement.
  • Drafting and negotiation of merger, share purchase, and asset acquisition agreements.
  • Assistance with registration and qualification documentation.
  • Drafting of the term sheet, fulfilling conditions precedents and eventually closing the
  • Preparation of shareholder agreements and joint venture agreements.
  • Drafting and negotiating commercial contracts such as service agreements, non-disclosure agreements, and licensing agreements.

FAQs

There can be multiple benefits of mergers and acquisitions. However, it is frequently related to being more efficient or expanding capacities. Othercommon advantages include increased distribution possibilities, since a merger or acquisition frequently broadens a company's geographic reach, network, or service region. Furthermore, decreasing staff redundancy can assist in lowering labour expenditure. A corporation can profit from enhanced labourtalent by extendingthe labour pool from which it can draw.

For a merger or acquisition, there are several essential services that should be a part of the overall process. Some of them are: a) Financial, Tax, Technology & Legal Due Diligence b) Transaction Valuation, c) Joint Venture/Share Purchase &Subscription Agreement d) Business Restructuring e) Private Equity, Debt & Equity Syndication.

Before seeking funds from any external source, a start-up shall have the following documents that all early-stage investors require: a) Certificate of Incorporation: A Certificate of Incorporation (C01) is a legal document used to incorporate a private corporation under existing laws. b) Term Sheet: A term sheet is a non-binding agreement that outlines the features, terms, and conditions of a financial investment. c) Share Subscription and Shareholders' Agreement: These documents clearly lay down the rights of the Investors as perthe shares issued to them. d) Valuation report: When looking for startup capital, a valuation report is a legal necessity. A registered valuer's valuation is needed bythe Companies Act of 2013, and a merchant banking valuation is required by the Income Tax Act of 1961.

There are numerous sources in which a startup can raise funds, apartfrom personal sources (friends or family) and bootstrapping. The common external sources are angel investors, accelerators, incubators, venture capital firms, government schemes, and bank loans.

HOW CAN WE HELP?

The Firm has a team of lawyers who hold expertise in advising early stage startups and is in position to provide you with unrivalled expertise on your startup advisory and assistance needs.

ESOPs

Our team of experts can assist you in structuring an ESOP scheme which caters to your business interests. Our customised ESOP schemes are in compliance with the applicable laws and discusses all the essential terms in detail.

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FDI

We routinely assist start-ups seeking to build business synergies through foreign collaborations. These transactions are structured with optimal knowledge of FDI to ensure that they are legally compliant and cost-effective.

King Stubb & Kasiva

Offices In - New Delhi | Bangalore | Mumbai
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