After the euphoria of hearing the words “investment committee have approved your investment proposal”, it can be hard to get excited about the paperwork.
Certainly, ‘documenting the deal’ is not the “sexy” side of investing. But as Internal Counsel at Big Society Capital, paperwork is an integral part of my job. Our Gritty Reality blog recently raised some interesting issues about the legal process and it got me thinking about my last three years heading up the legal team at Big Society Capital.
One thing I’ve noticed is that there is sometimes a reluctance to involve lawyers in investment transactions as they are seen as “too expensive”, they “add unnecessary complication”, and people say to me “you can act for everyone”. Some of this may be because of bad previous experiences but it has certainly challenged my assumptions of how much people know about the legal process and the value of having an engaged lawyer.
So, what do you need to think about?