Archives for April 2012

Failing to tend to detail in contracts can cost millions….

The case of The State of NSW v UXC Limited [2011] NSWCS 530 demonstrates the need for organisations to play close attention to the minute details in their contracts.   As time is of the essence in most business transactions quite often the contract details frequently get overlooked.  In this instance the State of NSW was awarded $2,594,063.00 in damages and $126,185.14 in interest plus costs because a clause in the Contract schedule remained silent as to the limitation of the amount that could be awarded for lawful termination. [Read more…]

Is your business investor ready?

What does it mean to be “Investor Ready”?

The term “investor ready” is often bandied about however there is no clear definition.  This can tend to create confusion, as without a prescriptive definition, a person promoting a business (Promoter) may think that they are investor ready and investors may feel that the promoter is not.

The reality is that despite this lack of precision, there are certain “hallmarks” of investor readiness  regardless of the stage of the business lifecycle or industry that the business operates in.

The following is based on observation and is by no means an exhaustive analysis. [Read more…]

Negotiating the value of your input to a Joint Venture

We are often approached by people wanting to go into a “Joint Venture” with other party(s) so as to maximise the benefit of their combined skills.  At first glance the synergies are generally obvious and some sort of joint endeavour usually makes commercial sense.

When asked for more information about the exact nature of the proposed “Joint Venture” it becomes clear that they either don’t really know what structure they would like, or don’t understand the issues involved in choosing the most appropriate Joint Venture vehicle.

The information in this article is based on our experience in assisting clients to negotiate and document various different types of Joint Ventures.

[Read more…]

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