Legal Question - Board of Directors

Member resources:

Frequent asked questions:

What is Searchfunder.com?

Searchfunder.com is an online community of searchers, investors, lenders, brokers and other professionals. Over 80% of those involved in searchfunds maintain a Searchfunder account to help them network, hire, and mentor others.

What are the benefits of membership?

In addition to accessing the most active online network of business buyers, Searchfunder licenses research that is simply not cost effective for individuals. Access over 15,000 industry reports and 50,000 transaction financials. You also get monthly credits for contact information for your company sourcing campaign with the option to purchase more at drastically discounted rates. Searchfunder has pre-purchased access from these data providers in order to empower individual buyers and to help searchers level the playing field versus private equity.

Do you have deals?

While we are primarily a buy-side network, we do have hundreds of brokers that regularly post deals to the community.

Can I find an internship on Searchfunder?

Absolutely! We have the industry's largest intern job board. If you are considering a search, the first step is to help another business buyer so you can hit the ground running.

What does it cost?

Searchfunder is a subscription service. We offer flexible monthly, annual and lifetime memberships.

Monthly

$79 / month

Annual

$19 / month

Lifetime

$432 / once

Those who maintain an account with us for over 4 continuous years are permanently added to the community without the need for a membership.

Do I need an MBA to join?

While a large number of our members come from dedicated programs at Harvard Business School, Stanford GSB, Chicago Booth, and other top programs, searching is no longer reserved for the elite. With the current abundance of dry powder in private equity, and an increasing number of business owners reaching retirement age, good deals rarely go unfunded.

Post a question, deal, job, etc...

Make a post...

Complete registration to post.

by a searcher from Balamand University
in Nova Scotia, Canada

2yrs ago

Legal Question - Board of Directors

I'm in Canada trying to build a board of directors for a venture to roll up the home care industry.

I am following Dan Pena's QLA model of building my board first, solidifying the strategy that I have as a team, warming up lenders and learning there parameters, and then sourcing deals and finding targets from an experienced position.

For the board I need:

- Chairman for M&A experience
- Industry Expert
- CFO for financial modeling and deal structuring and leverage with banks etc..
- Attorney for legal

QUESTION: The model says do not incorporate until you have a deal to close, then you have the lawyer form the company and distribute shares etc. Until that point, my team will be working with me on a handshake deal. Is there any legal responsibility/liability for me personally until the company is formed??

Telling someone ok you will be my chairman for 8% equity for example and then the CFO for 5% etc. What could go wrong if for any reason we don't move forward with the CFO for example and we decide to get a different CFO?

Thanks!

1 Like

266 Views

reply by a searcher 2yrs ago
from Harvard University in Toronto, ON, Canada

My only advise do not do something that you did not learn to do. If everyone could do this module then people would not be paying the old man to go learn his module.

reply by a professional 1yr ago
from Massey University in Auckland, New Zealand

Q1. No. Q2. Quasi CFO / Finance Board member Based upon your post and your questions clearly indicates you are not following your mentors 50 years of experience and his proven QLA model correctly. Go back to the steps.