Participations, exit and succession: Investors and company sales in the Creator business

The value of a creator business

A creator company consists of reach, brand, content, contracts and often of the person himself. It is precisely this bond with a person that makes investments and sales demanding: what exactly is sold? How long does the creator have to be involved? What happens when he no longer wants or can?

We accompany Creator, founder of agencies and investors from the first declaration of intent to due diligence to implementation. Our focus is on the fact that agreements still work when the parties involved change.

Typical situations in which we help

• An investor offers money for shares in your company.
• A brand wants to participate in its product line.
• You want to sell your agency or label.
• A channel or brand is to be transmitted.
• You plan to succeed in a family or team company.

Legal basis at a glance

Term sheet and rating

At the beginning there is usually a term sheet with valuation, participation amount and basic rules. It is predominantly non-binding, but shapes the later contracts. Important points such as dilution protection, voting rights and exit rules should already be negotiated here.

Shareholder agreement

It regulates reservations of approval, vesting, co-sales rights and obligations (tag-along, drag-along), non-competition clauses and the elimination of shareholders. With creators, rules on the use of name and image are added, which can endure beyond the elimination.

Sale and Transfer

Shares (share deal) or individual assets such as brands, content and contracts (asset deal) can be sold. Social media accounts are only partially transferable according to the platform conditions. Part of the purchase price is often linked to future successes (earn-out).

That’s how we go

1. 1

   Initial assessment

   You briefly describe the facts to us and send documents such as a contract, cease-and-desist letter or screenshots. We will tell you promptly where you stand and what the next steps will cost.

2. 2

   Secure evidence and deadlines

   We document posts, stories and chat history in court and record all deadlines. Content disappears quickly, especially with social media.

3. 3

   Set strategy

   Together we decide whether negotiation, defense, cease-and-desist letter or contract drafting is the right way. It is always about your reach and your business relationships.

4. 4

   Implement and enforce

   We negotiate, formulate, answer and, if necessary, go to court, also in an urgent procedure. You will regularly be informed of what is happening.

Regarding the costs: Before every step we tell you what it costs. Depending on the case, we charge a flat-rate fee or by hourly rate according to the Lawyers’ Remuneration Act (RVG). If the opponent is obliged to reimburse, for example in the case of a justified cease-and-desist letter, we will claim these costs for you. More on this on our page Fee.

Common mistakes to avoid

• Sign a term sheet without negotiating exit and control rules.
• Don’t agree on a vesting in the founding team.
• Give unlimited personal rights to the buyer.
• Define earn-out key figures unclearly.