E-businesses come in all shapes and sizes from the fast growing hi-tech start-up to the bricks and mortar company which is steadily moving on-line. The people behind these businesses are all different and the company structures best suited to them are all different. We can help a range of businesses with the challenges of e-business in a practical down to earth way.
Somethings stay the same. The main ones are the relationships between the directors and shareholders, the contractual terms for selling to customers, minimising tax liabilities and planning for an eventual exit from the business. However how you achieve all this needs to be thought through with a plan which is flexible.
Other things are different. You have to assume modifications will need to be made to the business plan and e-businesses will be subject to more changes than bricks and mortar business. New technology and disrupters will play a bigger role with “disrupters” being themselves disrupted.
Some of the aspects we can advise and help with are:
The structure of the business. Keeping options open is key so that you are not frustrated if you need to make changes to your business and are slowed down by a rigid structure.
Shareholder agreements. These are important to protect the investors. The traditional shareholder agreement is not adequate to deal with fast growing e-businesses which can build exponential share value in a short time.
Directors service contracts. The intellectual property of the company is where its value usually is and the directors should have comprehensive service contracts to protect the shareholders.
Agreements as to the timing and circumstances when the company can be sold and how shareholder value can be maximised.