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The Feel Good Drinks Company Limited
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Davenport Lyons was recently asked to advise several private investors into a new premium non-carbonated beverage drinks manufacturing and distribution company called The Feel Good Drinks Company ("Feel Good").
The founding director and shareholders of Feel Good were former employees of the Coca-Cola Corporation and wanted to establish a new type of soft drink to fill a gap in the growing soft drinks market.
The investment into Feel Good involved a significant amount of due diligence into the new start-up company based on its financial projections and business plan. As with any investment into a new venture, the investors were seeking as much protection as they could get to control their investment, while allowing the directors, with experience in the industry, the freedom to respond to market factors and the power to amend the "agreed" Business Plan.
The transaction highlighted a number of issues including ways of:
- creating a model for investors and founder shareholders to work together to achieve both their objectives and to realise a common exit strategy;
- drafting clauses that protected the investors from having their shareholdings diluted without restricting Feel Good from raising further finance.
The members of the firm involved in this transaction were Michael Hatchwell, Head of Corporate, assisted by Peter Weiss. Please contact either for more information about the firm's corporate finance and private equity capability.
Click here for more information on the Corporate Department.
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