Searcher Diligence
Utilizing background checks, reference checks, virtual and/or in-person meetings, assessment of searcher's experience, character, tenacity, humility, and skills. This is one of the most important parts of the process: it is not possible to do a good deal with a bad person.
Company & Industry Diligence
Financial modeling (especially of investment IRR in no-growth or low-growth scenarios and leverage ratio stress testing), analysis of historical financials, customer and supplier concentration, employee relationships and agreements. Industry entrance/exit dynamics, competition, growth, profitability, etc.
Deal Terms
Review of deal terms against the standard for self-funded search investing. Legal review of investor docs. Negotiating put options to create agency on the timing of liquidity for our investment. Assessment of appropriate check size if an investment is warranted.
Real Estate Law
We offer comprehensive legal services in real estate transactions, including property purchases, lease agreements, and zoning issues, ensuring your investments are secure. We have the knowledge and experience to guide you.
Employment Law
Our attorneys specialize in protecting the rights of both employers and employees, offering guidance on employment contracts, workplace disputes, and compliance with labor laws. We have the knowledge and experience to guide you.
Intellectual Property
Safeguard your creative and intellectual assets with our expert legal services in copyright, trademark, and patent law, ensuring your innovations are protected. We have the knowledge and experience to guide you.
Typical Investor Economics at the Individual Deal Level
The investments we make in acquisitions earn a preferred return (annual, non-compounding) typically of 8% - 12% on invested capital.
Investors’ initial capital plus their preferred return must be paid back before any distributions are made to other shareholders (other than for taxes).
Investors continue to receive pro-rata distributions after their initial investment is returned. Salary increases to the Searcher/CEO are capped to align incentives.
Investors receive equity in the acquired business with a “step up” of typically 1.5x - 2.5x.
For example, if a business was acquired for $1.0m and Entrepreneurial Capital invested $50k with a 2x step up, we own 10% of the equity instead of 5%.
A Few of Our Client's Comments
We take pride in the trust our clients place in us and the successful outcomes we've achieved together.
"Legality's team provided invaluable counsel during our merger. Their attention to detail and strategic insights made all the difference in ensuring a smooth transition. I couldn’t have asked for better representation."
"Working with Legality was a game-changer for our company. Their expertise in corporate law helped us navigate complex contract negotiations with ease. The professionalism they showed were truly impressive."
"I’ve worked with many law firms over the years, but Legality stands out. Their real estate law team was exceptional in handling my property transactions, offering clear guidance and ensuring everything."
"David Nguyen at Legality provided outstanding support during a challenging employment dispute. His advice was spot-on, and he handled the situation with the utmost professionalism.