ARROWS lawyers set up a framework for the founder to buy back his stake

The founders of the startup decided to buy out the existing investor's stake and needed a clear, negotiable framework for the transaction. ARROWS Law Firm prepared a precise term sheet that transparently set out the key parameters and determined the direction for the follow-up documentation and negotiations.

ARROWS Law Firm represented two founders of a technology startup in a transaction involving the purchase of shares from an investor. The firm's legal advice included, in particular, an analysis of the existing relationships between the shareholders (SHA, vesting, option programs), the selection and description of the transaction structure, and the preparation of a term sheet as a basic framework for further negotiations.

The term sheet clearly defined the purchase price and the mechanism for its payment, the closing conditions and schedule, the procedure for releasing collateral, the termination of investor rights and agreements, as well as protective elements on the part of the founders (warranties and indemnities, non-compete, non-solicit, work with know-how). The services also included a checklist of follow-up binding documentation (SPA, amendments to SHA, resignation and releasing statements) and a negotiation strategy for further stages of the transaction.

The team was led by Mgr. Jáchym Petřík (corporate and transactional agenda, start-ups/VC). Mgr. Vojtěch Sucharda (dispute and corporate litigation) and JUDr. Zuzana Liškařová (commercial and contractual agenda) also participated in the preparation and negotiation. It was excellent work by our colleagues, which provided clients with a clear and practical assignment for further steps.