Presentation and Financial Indicators

In the presentation, the owner shows the product or service, customers, revenue, margin, team, main assets and investment amount. Every material figure should have a source in accounting or management reporting. The investor is interested in sales, cost of sales, profit, cash flow and the business's ability to grow after the investment.

The financial calculation explains how sales and costs are expected to change after investment. The owner separately states how much is required for equipment, stock, marketing, employees or other needs. Forecasts are separated from actual results so that the investor can see the business history and future expectations as different indicators.

For initial contact, the owner provides enough information to assess the business and the possible investment amount. Confidential contracts, personal data and detailed registers are disclosed after the parties agree the rules for handling such information.

A confidentiality agreement is appropriate when the investor receives detailed financial information, customer databases, technical materials or other information the owner protects against disclosure. The parties define which information is confidential, who may receive it and how long the confidentiality obligation lasts.

Documents Evidencing Business Value

When an investor reviews the business, they usually request constitutional documents, ownership information, financial and tax reporting, bank statements, key contracts, property documents and intellectual-property rights. The owner provides current signed documents separately from working drafts and forecasts.

It is useful to organise documents into corporate, financial, tax, contractual and HR sections. Each file has a clear name and date. The investor can review the business more quickly, while the owner controls which materials have been provided and who is authorised to see them.

If the investor identifies a risk, the parties assess its effect on the price or transaction terms. Some issues can be corrected by the owner before investment; others are reflected in warranties, the payment procedure or allocation of responsibility. A lawyer converts the commercial understanding into the agreement.

The business valuation should be consistent with the financial indicators and investment terms. If the owner is offering an equity interest, the investor needs to understand what proportion of the company is received for the money invested. The lawyer checks that the interest, valuation and payment amount are stated consistently in the presentation, headline terms and agreement.

Headline Investment Terms and Signing the Transaction

Before the full agreement is prepared, the parties agree the amount, investment form, valuation, equity interest or repayment procedure, payment timetable, management rights and exit terms. These provisions can be recorded in a short document setting out the headline terms of the proposed transaction. This saves time and allows the parties to proceed to the full package once the key issues have been agreed.

After agreement, the lawyer prepares the contract, corporate resolutions and changes required for the investor to enter the business. The accountant checks the payment amount and method, while the owners define the post-transaction operating arrangements. The investor should receive the rights being paid for, and the existing owners should understand which decisions remain under their control.

UBC can prepare a presentation, financial materials and legal documents for negotiations with an investor. To start, a description of the business, actual financial indicators, ownership structure and desired investment amount are sufficient. The cost depends on the condition of the documents, scope of review and complexity of the proposed transaction.

For a foreign investor, materials are often prepared in Ukrainian and English. The owner controls that figures, company names, interests and dates match in both versions. Documents for Ukrainian state registration are prepared in a form accepted in Ukraine, while translations are prepared where required for the particular action.

The investor also assesses the people on whom revenue and management depend. The owner identifies the role of key managers, salespeople, technical specialists and other employees without whom the business would lose part of its income. If an important customer or supplier relationship depends on one person, this affects the risk assessment. Contracts, job authority and rights to materials created by employees help show that the business can continue operating after the transaction.

For a business with property, equipment, stock or registered trade marks, the owner separately presents the documents for those assets. The investor can see what belongs to the company, whether there are pledges or other encumbrances and which assets actually generate income. If material property belongs personally to the owner or to another company, the parties agree the terms of its continued use before the transaction.