Last month, we began a seven-part series on “Legal Considerations for Selling an Emerging Growth Company,” and, in that post, we discussed six important steps in the merger and acquisitions process that emerging growth companies will need to prepare for, which are: (1) engaging a financial adviser; (2) entering into a non-disclosure agreement; (3) negotiating the term sheet or letter of intent; (4) due diligence; (5) drafting and negotiating definitive documents; and (6) closing. We will continue to dive deeper into each of these steps of the process, and this month we are focusing on the first step, which is negotiating an engagement letter with a financial adviser. [Read more…]
Legal Considerations for Selling an Emerging Growth Company Part 2: Creating an Engagement Letter with a Financial Adviser
Everyone knows that a primary goal for many, if not most, startups and tech companies is to eventually sell the company, even if the founders intend to remain with the company. It goes without saying that selling your company can result in an enormous payday and provide continued vitality for the company going forward. That said, it’s critical that owners/entrepreneurs comply with legal requirements and protect their legal interests throughout the sales process (also known as the “M&A process”) to maximize their chances for a positive outcome.
With that in mind, this month I’m beginning a series of blog posts on the legal considerations you’ll need to keep in mind when selling your business. We begin with taking a look at an overview of the process involved in a merger or acquisition (often referred to as an “M&A deal”). Below is a high-level look at six essential steps to successfully completing the M&A process, and in future posts, we will dive deeper into what each one means for you. [Read more…]
In many ways, the dilemma of deciding whether to take venture capital money from an interested VC firm can be filed under “Good Problems to Have.” The majority of startups never get to this point, either failing outright, or, even if they are profitable, they simply never build the type of company profile that fills VC investors’ imaginations with visions of high returns. But for those businesses that, through a mix of hard work, innovation, and luck, have reached the point of attracting the attention of VC firms, the decision of whether to take their money is still a hugely important one, and one that comes with high risks and high rewards. Below, I’ll cover a few of the primary pros and cons of taking venture capital investment that you’ll want to have in mind as you work through this stage of your company’s life growth. [Read more…]
Title III crowdfunding is here! The first funding portals can begin operations today, May 16, 2016. On Friday, I was a guest on the “This Week in Law” Podcast, where I talked about the impact this will have on startups, technology companies, and the people who invest in them. Click on the link below for my discussion.