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What is Authorized Capital? Authorized capital (also called nominal or registered capital) refers to the maximum amount of share capital that a company is allowed to issue to its shareholders as per its Memorandum of Association (MoA). This is the upper limit on the value of shares a company can issue, although the company may not necessarily issue shares up to this limit. The company can raise funds by issuing shares to the shareholders within this authorized capital. The authorized capital can be increased as per the company’s growth needs, but it requires following a legal process, including board approvals and filings with regulatory authorities. click Here for - increase authorized capital https://lnkd.in/eQ52FETv

Key Clauses Investors Should Focus on in a Shareholders’ Agreement When investing in a business, understanding the key clauses in a shareholders’ agreement is crucial for protecting your interests and ensuring a successful partnership. Here are the most important clauses to pay attention to: 🔹 Control Over the Board: Ensure you have influence over key decisions by securing board representation or veto rights on critical issues. 🔹 Minority Protection - Reserved Matters: Safeguard your investment by requiring your consent for major decisions, such as changes to business strategy, capital expenditure, or issuing new shares. 🔹 Control Over Spending: Maintain oversight on the company’s financial health by setting limits on spending and requiring approval for significant expenditures. 🔹 Appointment of CEO/CFO: Secure the right to appoint or approve key executives to ensure competent management and alignment with your vision. 🔹 Drag and Tag Along Clauses: Protect your exit strategy. Drag-along rights enable majority shareholders to force minority shareholders to sell their shares, ensuring a smooth exit. Tag-along rights allow minority shareholders to join the sale, ensuring they get the same deal as majority shareholders. 🔹 Anti-Dilution and ROFR: Anti-dilution provisions protect your ownership percentage in case of future fundraising at a lower valuation. Rights of first refusal (ROFR) give you the option to purchase additional shares before they are offered to outsiders. 🔹 Liquidity/Trading of Shares: Ensure there are clear terms regarding the liquidity and trading of shares. This can include access to a secondary market or other mechanisms that facilitate the buying and selling of shares. Understanding and negotiating these clauses can make a significant difference in your investment’s success. At PE Gate, we prioritize these key aspects to ensure our investors’ interests are well-protected and aligned with their long-term goals. Learn More About PE Gate at pe-gate.com. #Investing #PrivateEquity #ShareholdersAgreement #BusinessGrowth #InvestmentProtection #PEGate

Solid advice for USAs Thanks Ara and PE Gate for sharing this

Key Clauses Investors Should Focus on in a Shareholders’ Agreement When investing in a business, understanding the key clauses in a shareholders’ agreement is crucial for protecting your interests and ensuring a successful partnership. Here are the most important clauses to pay attention to: 🔹 Control Over the Board: Ensure you have influence over key decisions by securing board representation or veto rights on critical issues. 🔹 Minority Protection - Reserved Matters: Safeguard your investment by requiring your consent for major decisions, such as changes to business strategy, capital expenditure, or issuing new shares. 🔹 Control Over Spending: Maintain oversight on the company’s financial health by setting limits on spending and requiring approval for significant expenditures. 🔹 Appointment of CEO/CFO: Secure the right to appoint or approve key executives to ensure competent management and alignment with your vision. 🔹 Drag and Tag Along Clauses: Protect your exit strategy. Drag-along rights enable majority shareholders to force minority shareholders to sell their shares, ensuring a smooth exit. Tag-along rights allow minority shareholders to join the sale, ensuring they get the same deal as majority shareholders. 🔹 Anti-Dilution and ROFR: Anti-dilution provisions protect your ownership percentage in case of future fundraising at a lower valuation. Rights of first refusal (ROFR) give you the option to purchase additional shares before they are offered to outsiders. 🔹 Liquidity/Trading of Shares: Ensure there are clear terms regarding the liquidity and trading of shares. This can include access to a secondary market or other mechanisms that facilitate the buying and selling of shares. Understanding and negotiating these clauses can make a significant difference in your investment’s success. At PE Gate, we prioritize these key aspects to ensure our investors’ interests are well-protected and aligned with their long-term goals. Learn More About PE Gate at pe-gate.com. #Investing #PrivateEquity #ShareholdersAgreement #BusinessGrowth #InvestmentProtection #PEGate

A high-level overview of a well-run M&A process – the key predictor of success in selling a business and increasing transaction value. #exitstrategy #mergersandacquisitions #sellingyourbusiness #investmentbanking

Looking to maximise your business valuation? Consider a minority exit to a strategic trade partner. Unlike private equity deals, this strategy focuses on yielding long-term benefits. A minority exit to a trade partner not only provides capital but also opens opportunities for growth, aligning product offerings, optimising supply chains, and expanding customer bases. This can significantly enhance your business's value and long-term market competitiveness. Plus, it allows you to retain control over your business's direction. Interested to learn more about how you can leverage this approach and effectively prepare for such transactions? Check out our latest article: https://shorturl.at/oQYnG #BusinessValuation #MinorityExit #StrategicTradePartner

Have you checked out our How Deal Terms Impact Due Diligence report yet? If not, you may be surprised at how much longer and complex due diligence is for private equity targets. To get the highlights, check out our press release and download the report: https://ow.ly/BJAg30sFPz6

Corporate Buyers Maintain an Advantage in Upcoming M&A Recovery

How PE firms find their deal flow Register for the webinar here https://lnkd.in/emfSg5tY