Portfolio Company Legal Health Check.xlsx

	A	B	C	D	E	F
1	Portfolio Company Legal Health Check
2	A framework for assessing legal and governance risk in your portfolio \| acevedoventurelaw.com
3
4	Risk Area	Assessment Question	Rating (1-5)	Red Flags	Recommended Action	Last Reviewed

5	Corporate Governance
6		Is the board meeting regularly with documented minutes?		No board meetings in 6+ months. No minutes on file.
7		Are D&O insurance policies current and adequate?		Lapsed coverage. Policy limits below industry standard.
8		Is the company in good standing in all operating jurisdictions?		Delinquent franchise taxes. Administrative dissolution risk.
9		Are information rights being fulfilled (financials, cap table)?		Investor not receiving quarterly updates. Cap table not shared.
10	Capitalization
11		Is the cap table accurate and reconciled to legal documents?		Cap table does not match certificate of incorporation. Missing SAFEs.
12		Are all equity grants properly authorized and documented?		Options granted without board approval. Missing stock purchase agreements.
13		Is the option pool sized appropriately for hiring needs?		Pool depleted. Need to increase before next financing.
14		Are 409A valuations current (within 12 months)?		Expired 409A. Options being granted at potentially stale strike prices.
15	IP / Technology
16		Are all IP assignments in place for founders, employees, contractors?		Missing IP assignments. Founder IP not transferred to company.
17		Has the company conducted an open source audit?		No open source policy. Using copyleft licenses in proprietary code.
18		Are key technology licenses transferable in an acquisition?		Change of control provisions that could block M&A.
19	Employment / People
20		Are employment agreements, CIIAs, and NDAs in place for all team?		Missing agreements for early employees. No CIIA for contractors.
21		Is the company compliant with labor laws in all operating states?		Misclassified contractors. Multi-state hiring without registration.
22		Are equity compensation plans properly administered?		Late option grants. Missing 83(b) elections.
23	Material Contracts
24		Are key customer contracts assignable in an acquisition?		Anti-assignment clauses in material customer agreements.
25		Are there contracts with change of control provisions?		Vendor contracts that terminate on change of control.
26		Is the company meeting all material contractual obligations?		Breach risk on SLA commitments. Unfulfilled milestones.
27	Litigation / Regulatory
28		Is there any pending or threatened litigation?		Undisclosed threats. IP infringement claims.
29		Is the company compliant with applicable regulations?		Missing licenses. Data privacy non-compliance (GDPR, CCPA).
30		Are there any unresolved tax issues?		Unpaid payroll taxes. State tax nexus issues.
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32	Portfolio Health Score
33	Average Rating:	--
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