Ensure Offer Letters and Agreements Are Clear and Legally Sound
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Investors and acquirers want to know your employment terms are transparent and enforceable. You also want to ensure that you haven’t contractually given away certain rights to your company or promised obligations in the event of a sale.
BEST PRACTICES:
Keep digital copies of all signed agreements securely organized and accessible. Buyers will expect to see a clear paper trail during due diligence. Use Proprietary Information and Invention Assignment Agreements (PIIAAs) to make sure intellectual property created by employees belongs to the company – not the individual. Provide every employee with a signed offer letter outlining title, salary, at-will status, start date, and any bonus or equity offers. This ensures transparency and helps prevent later disputes.
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