GPS: Legal: What’s in your file?

A file that holds a business’s legal and organizational documents, along with other important paperwork, is sometimes called a “data room.” These days, however, keeping these items at your fingertips doesn’t necessarily mean keeping a physical binder in a physical room. These documents might be formatted digitally to allow for fast, flexible accessibility whenever you need it.

What sorts of documents belong in your data room? These might include:

• Bank contracts and loan documents
• Business licenses and permits
• Business organization documents
• Credit card paperwork
• Employment contracts
• Insurance paperwork
• Leases
• Payroll records
• Rental or purchase contracts for large pieces of equipment
• Sales agreements
• Small Business Administration (SBA) grants
• Statements of work
• Tax returns
• Vendor contracts

Keeping these items current and valid ensures you can access them and act whenever necessary. Facing any one of The 5D's— Disagreement, Divorce, Disability, Distress, or Death — will require the immediate review of organizational documents in order to determine options. The extra D, “Don’t Want to Do It Anymore,” might not present as urgent a problem, but will still require a look at the important documents to determine how best to proceed.

Maintaining a business’s important documents should be a prominent part of standard operating procedures. These documents should be reviewed on a regular basis so renewals are obtained on time and old documents are archived.
Moving physical documents to an online platform can be accomplished using any of the readily available vendors such as Dropbox, Box, ShareFile, Share Sync, Google Drive, One Drive and many others. Naturally, there are pros and cons to each, and finding the right fit for your business will mean weighing the features, security, and pricing.

We are happy to announce an addition to the family here at Eagle Corporate Advisors. Brian and his wife, Maggie, welcomed a new baby boy, Bryce, on Aug. 7. Bryce weighed in at a healthy 7 pounds, 14 ounces, and both he and Maggie are doing well.

The joy of a new baby, like all family milestones, is a reminder of why we do what we do. A business does not exist for its own sake; it is a vehicle to provide income and stability for your family and give back to your larger community.

Proper Preparation Prevents Poor Performance.

This is a motto we brought up at our recent presentation on Aug. 9 for the Southern Nevada Chapter of the Alliance of Mergers & Acquisition Advisors. It was a pleasure to speak with this group of professionals and business owners on the topic of “Time Kills Deals — Always Be Ready.” In our short discussion, we covered the timeline of transactions, steps involved in preparing for a future deal, and ways to begin preparing now to avoid poor performance later.