The 3 “D’s” That Should Make You Think Twice Before Buying That Existing Business

If you want to own and operate a business, it can be hugely beneficial to purchase an existing operation. Ideally, when you purchase an existing business you will be able to hit the ground running and avoid many of the challenges and growing pains inherent in starting a company from scratch. However, not only has an existing business had time to become well-established and successful, it has also had time to Read More

Business Planning: 6 Strategies to Help You Exit…Stage Left

Whether you are a seasoned entrepreneur or you are just thinking about the possibility of starting or purchasing your own business, it is vital that you understand the concept of an “exit strategy.” In terms of business, an exit strategy is your plan for leaving the company you own. Ideally you will be exiting because you have achieved all your goals and are ready to move on, preferably with a nice profit. You may Read More

A Brief Q&A on Private Placement Memorandums (PPM)

Finding investors for your company is not a simple task. You have to demonstrate to people that your company is deserving of not only their faith in your company’s potential, but even more importantly, their hard-earned money. In addition, seeking out investment dollars from others can potentially put your company and you and the other selling principals at risk if an investor feels that he or she was misled or that Read More

The Advantages and Disadvantages of Employee Equity Incentives

There are numerous ways an employer can seek to incentivize its workforce. Under most circumstances the goal is the same: to give one’s employees a tangible reason to be productive and do everything in their power to improve the company and further the company’s interests. Incentives are meant to be a win-win situation for employees and employers, providing some sort of benefit to the employee for good work—work Read More

Intellectual Property Rights: The Importance of Invention Assignment Agreements

As an entrepreneur you’ve hopefully already thought a lot about protecting your company’s intellectual property. However, many business owners make the mistake of only considering protections against those outside their company who might seek to violate their IP rights. What about those within your company who are actually creating the intellectual property you want to protect? This is a complex area of IP law Read More

Crowdfunding Startups: Investing for the Masses

The digital age has lead to a boom in the practice known as “crowdfunding” This alternative form of finance has become increasingly popular thanks to websites like GoFundMe and Kickstarter where everyone from inventors to filmmakers to those seeking charitable donations can go to get their project funded through small contributions from large numbers of people. Securities laws previously prohibited allow Read More

Letting Go: When Emotional Attachment Affects Your M&A

We see it all the time. A business owner flip flops back and forth with regard to a proposed deal to sell his or her company. One day they are in favor of the deal, the next they are lukewarm to it. However, oftentimes it is not the details of the transaction preventing them from agreeing to the deal. Many of these owners are perfectly content with the money offered, the legal structure and terms, as well as the Read More

A Brief Guide to Preferred Stock, Part II

In our last blog we detailed what preferred stock is as well as some important components and variations of it, including liquidation preference, antidilution rights, and voting rights. There are numerous variations of preferred stock, which can be tailored to the specific needs of each company and its preferred stockholders. In Part II of this blog, we’ve provided explanations for more of the various aspects and Read More

A Brief Guide to Preferred Stock, Part I

Preferred stock in a corporation is a series of stock that carries with it special rights and privileges for the holder. In terms of a company’s investment hierarchy, preferred stock is above common stock, but below debt instruments (e.g., notes, bonds, etc.) in terms of priority of payment. The special rights afforded by preferred stock can include things like certain voting rights in a company, preferential Read More

Key Components of a Strong Merger & Acquisition

There are numerous reasons you may want to merge your business with another. Perhaps you want to expand your business to new geographic markets or clientele with which the prospective merger company has already established themselves. Maybe it is a financial necessity, or you simply believe that the practically instantaneous growth produced by a merger or acquisition will help your company achieve new heights and Read More