There are very few aspects of business that were not affected by the COVID-19 pandemic. Supply chain issues, staffing shortages, and remote work caused immediate problems, which have experienced some relief as the public health crisis is coming under control. As a result, there are significant changes that business owners…
Secured creditors use collateral to protect their investments. Collateral can be a good form of financial protection, but the security only exists if creditors follow all legal requirements. If all legal requirements are not met, a secured creditor might not have priority over other creditors – or have no legal…
Mergers and acquisitions are an important tool for expanding your business in the competitive field of technology. Unfortunately, hidden debts and liabilities can impose serious financial burdens on an unassuming buyer. Some buyers try to avoid this situation by purchasing assets rather than an entire company. This approach can still…
COVID-19 has changed business completely, across the world, and throughout every industry. As the country slowly reopens, business is resuming again. Mergers and acquisitions will slowly begin again as business owners feel more comfortable moving forward. It is important, however, to understand the additional risks a business can face while…
Everyone has different reasons for starting and ending a business. Some Silicon Valley entrepreneurs start their businesses hoping to be acquired by a larger corporation. Many tech industry business owners build their enterprises with the goal of selling them, while other business owners are simply ready for a change. Whether…
Selling your business can be an exciting time. An acquisition can represent a new stage of growth for a company. However, a poorly drafted acquisition agreement can also jeopardize the legal and financial interests of business owners who do not adequately prepare for such an event. What Issues Should Be…
For many California businesses, initial public offerings are a thing of the past. Founders of many startups now look to exit through acquisitions or asset sales. If you’re considering a merger, acquisition, or asset sale, don’t wait to prepare until you accept an offer. Properly preparing your company to minimize…
Acquisition is the goal of many Silicon Valley startups. Whether you’re selling to another owner, dispersing your assets, or merging with an industry leader, there are three main types of private acquisition structures: merger, asset acquisition, and stock acquisition. There are benefits and fallbacks to each type of acquisition, and…
Mergers between companies can get complicated. First, there are potential regulatory issues, at both the state and federal level. These regulatory issues can involve multiple agencies and be quite complex, requiring the use of lawyers specializing in such issues. This, of course, can drive expenses up considerably. Further, there are…
Mergers in the tech world are quite common. In a merger, one or more companies combine to form a new company (i.e., legal entity). Mergers can be complex and have many moving parts. The transaction can often include legal documents, valuation, key deliverables, operational logistics, regulatory matters, and financing and…