Business owners looking for an angel investor to aid with a start-up or the acquisition of a new business, must make sure they carry out their due diligence on an investor before signing any agreement, a number of experts have agreed.
Serial entrepreneur, Andrew Scott, said that there are practices - such as angel funding networks that charge a pitching fee for access to investors - that are frowned upon, but that take place anyway. These, Mr Scott explained, are exactly what entrepreneurs should be aware of.
"You have to do your due diligence on investors," Mr Scott warned. "They are certainly going to do it on you and use the information to cut themselves a good deal."
He said that there are many people he would speak to about the angel investor first, before entering into anything officially. These would include people from the angel's other investments, to see what sort of experience they have had, as well as their own accountant, and other people in a similar industry.
He said it is also essential to get a lawyer who has specific experience in small-scale business investment - a rarity in the UK - so as not to be caught out by a 'fallen angel' in the contract. 
For just £30 your business for sale will feature at the top of and in the sidebar on business for sale pages, making your business stand out from the crowd