Acquisition is an endpoint for many startups, and many of those grant stock options to employees. This article briefly discusses some of the options for how stock option plans can be treated in the event of an acquisition.
Although it takes more time and effort than other types of offerings, a California qualification by permit (25113) offering has major advantages in terms of allowing public advertising and having low investor requirements.
The offering can...
Markus May is interviewed by the Illinois State Bar Association on how to find a business to buy and the business buying process.
This article discusses the implications of the contents in a Nondisclosure agreement and how they could affect how a merger and acquisition is handled. In particular it discusses the rights of an interested party after discovering important...
The case study of NeoGenix Oncology presents a wonderful opportunity to warn against the dangers of not complying with SEC regulations, including the possibility of civil litigation or criminal charges. Neogenix Oncology paid finder fees to third...
Are lawyers really all that important for letters of intent (LOIs)? This post discusses the benefits and implications of having and not having legal counsel during the initial stages of a business deal or venture.
Article is the fourth in a series exploring techniques to attract and retain important and key employees through the use of profits interests. Profits interests are interests in a Parternership's or LLC's future profits without using existing...
As mentioned last time, there are many ways to structure securities to be sold in an offering. How they are structured requires balancing what is attractive to investors with what the company can live with.
In terms of equity offerings, for...
If a company makes two securities offerings too close together, the securities regulators may consider the two offerings “integrated”, meaning two parts of a single offering. That can violate the requirements of the securities...
Several securities-offering exemptions allow “sophisticated investors” to invest. The question is how to determine when potential investors are sophisticated.
Federal Rule 506 offerings (and the California 25102(f) offering)...