As a tech investor, it can be challenging to keep abreast of all the legal documents a company has signed with another entity. However, when you do this you get a larger picture of a company’s transactions with other companies or investors which can help give you insight into their future related deals and company strategies.
One area that can be beneficial to investors when analyzing a company’s future to analyze would be the areas surrounding the details of a purchase agreement of a company. A fully executed purchase agreement is a document outlining a legal transaction that is binding for all parties involved in the deal and proves that the deal is valid. It is important to be familiar with when dealing with an organization like SaverOne and when you are making investment. It is one of the most important documents for any organization because of their ability to protect you. Here are some more detailed insights into what a fully executed purchase agreement is.
A purchase agreement is a formal arrangement between two or more parties. It can be a simple purchase agreement for just one item, like a piece of machinery or equipment or a complex one where a company purchases one of its competitors or an entire new technology to compliment its existing offerings. Regardless of its complexity or what is covered, a fully executed purchase agreement is the most important document of the deal and has to contain certain items, including:
The Importance of a Fully Executed Purchase Agreement for Validation of a Transaction
When dealing with a company that is publicly traded, like SaverOne, it is imperative they have a fully executed purchase agreements as these need to be filed with the Securities and Exchange Commission (SEC) to be considered legally binding. Companies have to provide full details on any agreements they make, so companies cannot consider a transaction complete until the fully executed purchase agreements have been signed by all parties.
Using Fully Executed Purchase Agreements to Protect Investors’ Interests
There is no such thing as a perfect deal. While your due diligence into a company’s strategy and technology may be thorough and as accurate as possible the deal could still fall through. To protect your interests and to ensure you receive full compensation for the money you have invested, you need to have fully executed purchase agreements that document any obligations by either party to prevent any future litigation. Make sure these agreements are drafted by legal professionals who are familiar with your company’s needs and that you also have a third party review them to ensure you understand any complex legalese within the document. You cannot afford to be in the dark about anything when it comes to these kinds of arrangements.
How a Robust Legal Framework Supports Innovation in Tech Companies
SaverOne is a technology designed to create safety measures for smartphones in any vehicle, by preventing text messaging and other related activities while driving. In 2016, they purchased Full Drive, a GPS and monitoring system to add to their technology. This transaction was outlined in a fully executed purchase agreement, so they could quickly pivot and provide their customers with this important and much-needed functionality.
SaverOne Does Not Leave Anything to Chance When It Comes to Legal Matters
For many tech companies, innovation is one of their most important values, but having solid legal framework for your organization is a major value too. All too often, organizations might think that drafted documents for purchase agreements are not all that important, but it is better to be safe than sorry when it comes to protecting your organization.
