8 Key Elements of a Great Deal

1. Does the plan include early investor return of capital?

2. How is the premium paid for the risks involved calculated?

3. What other "kickers" or other incentives not necessarily monetary in nature are being offered?

4. Are there warrants or other options to increase equity share or liquidate early?

5. Have you considered the tax and legal considerations including state securities laws?

6. What business organizational format are you using and why? Is it compatible with the proposed exit strategy?

7. Are buy-sell agreements, key man insurance issues addressed, convertible preferred stock, and management contract agreements included?

8. How will additional capital and further dilution of stock be handled?