To attract venture financing from global venture capital firms and accelerate their growth, many emerging companies in Africa often make the strategic decision to expand internationally by incorporating another entity outside Africa, with Delaware being the most preferred destination. This expansion, which takes the form of a corporate flip, often involves the shareholders or investors of the local entity becoming the shareholders of the foreign entity, with the foreign entity becoming the sole stockholder of the local entity.
This corporate restructuring offers significant benefits, especially for a company seeking to raise venture financing from foreign investors, and our team of attorneys has significant experience advising African startups looking to adopt this strategic move. We provide guidance on the best investor-friendly jurisdiction to incorporate, help with the incorporation and necessary documentation, and advise on other legal requirements to make the newly incorporated entity in good standing.
We are also strategically positioned to assist our clients with cross-border expansion and partnerships across the African continent. We leverage our extensive relationships across the continent to coordinate local advisory to our clients and ensure that our clients access credible representation when entering new markets. We gather market intelligence from a legal, regulatory and compliance perspective and we lay the legal and regulatory foundation to aid the smooth launch of our client’s products, branches, or subsidiaries on the continent.