(c) 2002 www.greenandgreen.com
Be Prepared: Audit & Due Diligence - Legal Needs
ฺIntellectual property
–ฉ ฎ & Pat Pending increases value
–Typically 90% + of Company’s future value.
ฺContracts
–Letters of Intent for Convertible Stock ,Term Sheet
–Financing Agreements
–Cap Worksheets – capitalization is a benchmark valuation – what can be liquidated?
ฺSEC & Dept. of Corporations
–Registration of non-exempt sales of shares
–Exemptions Reg. D, Rule 504 (<$1mm)
•Limited Offerings (<35 persons, minimal advertising)
•Accredited Investors
•