Finally, with funds in place, the issuer is ready to acquire the business itself—a transaction that has required careful negotiation, diligence, and now, execution. This process includes tasks, such as:

Letter of Intent (LOI): Following initial diligence, the issuer submits an LOI, outlining the deal’s high-level terms. Once accepted, full due diligence begins – this process can go on for weeks or even months and involve various parties to help fully diligence the target company from a business and legal perspective.
Purchase Agreement Drafting and Negotiation: The issuer’s legal team drafts the purchase agreement, which details key elements like closing conditions, indemnifications, and liability. The seller will then review and revise the documents as part of the negotiation process.
Finalizing the Acquisition: With the purchase agreement completed and closing conditions met, the issuer can proceed to closing. This involves executing documents, releasing funds, and officially acquiring the target company.

Given the concurrent demands of closing on raised capital and loans, timing is crucial. If any piece falls out of place, the transaction could be delayed. With three distinct sets of stakeholders, each with its own timelines, the issuer must coordinate carefully to ensure all conditions align for a successful close.

How Mainshares supports seamless transactions

Today, Mainshares’ dedicated onboarding team partners closely with each and every issuer on the platform to help guide the process from start to finish. Issuers receive several benefits of working with Mainshares, including:

Template and standardized documents: Mainshares provides issuers on the platform with standardized transaction documents—including an Operating Agreement, Term Sheet, Subscription Agreement, and Commitment Letter—which they can use and adjust with help from their legal counsel. In our experience, we’ve seen that when issuers use a common set of transaction documents, the drafting and negotiation process is cut down (saving on legal fees), and the issuer has an easier time explaining to investors the details of the deal.
Our partner network: Our partner network consists of attorneys, CPAs, QoE professionals, and others who can help guide you through the process of buying a business. We’ve built the network, so you don’t have to.
Closings support: Our closings team ensures that everything is in order as you go into closings – including, but not limited to – investor communication, closing documents, collecting and confirming funds, and timely managing of all moving pieces. Investor capital network: Mainshares has hundreds of SMB investors on the platform, and issuers can use our investor directory to reach out to prospective investors who may contribute either financially or strategically to the company.

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