GETTING INVESTMENT READY

A LEGAL FRAMEWORKSETTING THE TERMS

GORDON STÜNZNERSOLICITOR

SOUTH GELDARD LAWYERS

First Steps

• Work out what you are willing to offer• Decide who is involved• Evaluate your skills - do you have the necessary skills

for the proposal?• Look at your current business structure• Look at your proposed business structure• Due diligence• Talk

What are the relationships?

External Investors

Specific Purpose Vehicle

Joint Venture Participants

Individual Enterprise

Internal business considerations

• Partnership agreement• Trust deed• Corporate constitution• Shareholders’ agreement • Succession plan• Wills and Enduring powers of

attorneyIndividual Enterprise

Joint Venture Enterprise

What do we need between entities?

• MOU or Heads of Agreement• Joint Venture agreement• Corporate constitutional

documentation• Shareholders’ /unit holders’

agreements• Corporate governance policy

documents

Individual Enterprise

External Investor

Specific Purpose Vehicle

Joint Venture Enterprise

What do we need to put in place with investors?

• Contract of sale• Lease of land• Co-ownership agreement• Management agreement• Investment

strategy/management policyIndividual Enterprise

Example: Sale and Lease back

Sale and Lease back – Ongoing lease

Example: Multi-party sale and lease back arrangement

• 3 adjoining Landholders• Separate operations• 10,000 aggregated commercial cattle herd• Agreement to pitch to an international investor• Sale and lease back arrangement