Brophy Professional Corporation | Frequently Asked Questions

From time to time we are asked common questions that prospective clients may have. We have chosen to offer those questions here, with the corresponding answers. If you don't see your question answered here or anywhere else within our site, feel free to contact us directly, and we will be happy to help you out.

Q: We are overwhelmed by options to grow the business. How do we proceed?

A: Think about whether you want to (a) bring in new equity partners; (b) refinance your existing business; or (c) some combination of these.

Q: How do we access capital?

A: If you wish to remain private, depending on the amount required and the strength of your balance sheet there are a range of options from Private Equity firms to Asset based lenders.

Q: How do we structure our business to accommodate our strategy for growth?

A: This will depend on what your strategy is. Decide on the direction you want to move in and how you get there will follow.

Q: How do we approach investors?

A: With confidence. Particularly in the current market there is a lot of investment money looking for a home, but you have to be prepared.

Q: What legal work needs to be done to ensure that we get a fair deal?

A: This depends on the options you have available to you. A fair deal is one in which you confidently showcase your assets,(including your goodwill) and at the same time give away as little equity as possible. You want to present an attractive package for investors so that they are satisfied they can minimize their risk.

Q: Are our ownership interests clearly defined? Do they need to be in writing?

A: If you are looking to optimize your opportunities to strike a good deal, you need to have written agreements clearly defining who owns the business and what rights they have.

Q: How do we strengthen our management team and get solid employment agreements in place?

A: Every senior employee should have a written employment agreement setting out clearly their role and compensation package. Attracting good people requires that all parties know what the expectations are!

Q: How can we avoid losing control of the business if we bring in new partners?

A: Look for passive investors who want you to run the business and give them a fair return, not investors who want strong oversight rights.

Q: What's needed to expand our business into foreign jurisdictions?

A: In a global economy this is a complex question. The enforcement of both ownership rights and other contractual rights vary. You need a good legal quarterback to work with local counsel in the target market.

Q: How do we protect our property rights in other jurisdictions?

A: Property rights, including security interests, are governed by local laws. Your legal advisor can help you verify these rights in consultation with counsel in the foreign jurisdiction.