We’ve often been asked the question “How do I invest in a food business if I am not from the food industry?” The answer is that this building value in a food business requires a very particular knowledge base.
Any round of investment is preceded by due diligence, a type of audit that seeks to substantiate the value of a business. Compliance with regulation is a very big part of the budget of any food business. Regulatory costs are a particularly salient issue for investors looking to make a solid bet, or for entrepreneurs seeking equity funding. Food entrepreneurs need to appreciate the wealth they create by building businesses which internalize the costs of regulation, and investors need to be able to identify the gaps in compliance that may jeopardize the return on investment. No secure wealth can be created without paying heed to regulatory compliance.
On October 15, we are going to help shed some light on the situation. In conjunction with Slow Money NYC, tomorrow Jason will be teaching a workshop entitled “Due Diligence for Food Businesses: What Investors and Entrepreneurs Need To Know”. We will be discussing the various laws and regulations central to our Food Law practice that can affect the value of a food business, such as:
- Food and nutrition labeling requirements
- Liability, indemnification, and insurance.
- Food safety regulations such as the Food Safety Modernization Act.
- Labeling and Marketing Claims
- Agricultural lending, the Uniform Commercial Code, and secured transactions.
- Chapter 12, Agricultural Bankruptcy.
- Perishable Agricultural Commodities Act, the Agricultural Fair Practices Act, and the Packers and Stockyards Act.
- Environmental liability and compliance.
Reserve your spot through MeetUp.