Linkedin, October 20, 2014
I have been asked by many of my colleagues for a simple checklist on how to prepare a food company to do an equity crowdfunding raise. Here are five tips specifically tailored for consumer packaged goods’ companies.
1. Prepare your Company to Offer Shares and Gain Outside Shareholders:
The first step is to hire an outside accounting firm and prepare financial statements for the last couple of years of operations. The second step is to hire a securities lawyer to draft a proper shareholders agreement, which will contemplate how to operate the company after the offering, and what rights new shareholders will have in the Company. Your attorney should also help in preparing some form of offering document, as well as a subscription agreement through which investors will purchase their shares in the company. If you expect to gain many new shareholders, you should also consider engaging the services of a company to manage your investor communications, and information sharing pre-and post-offering, as well as a transfer agent to handle the shareholder registry in book-entry form rather than having the Company issue and manage physical share certificates itself.
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