The cross-purchase is one of the two main ways (“stock redemption” the other) a buy-sell agreement can be structured to provide your company with a succession plan. Under a cross-purchase plan, each company shareholder agrees in advance to buy the shares of the withdrawing shareholder while the withdrawing shareholder agrees
A buy-sell agreement is a document that preserves continuity of business ownership when specific events occur, such as death or disability of a business owner. It is a contract between shareholders or business partners concerning the future ownership of the business and can be drafted as part of the company’s
The tech staff at FORTUNE recently published a blog article about the long-term prospects of the venture capital industry. Indeed, the venture capital industry is currently facing pressures (potential higher taxes on gains, competition from angel investors because of startup’s reduced capital needs, etc.). But these headwinds are temporary obstacles
Most people would not consider 2Pac a source of wisdom or inspiration–but entrepreneurs are not like most people. Every entrepreneur knows to seek mentorship and guidance, but successful entrepreneurs know these sources should not be limited to those with fancy offices or degrees. If you take the time to listen
As you can see, I refurbished The Startup Lawyer blog. I hope you find it both visually pleasing and easier to access content. There are still a few minor formatting kinks to work out in the next few days, such as the “sidenotes” section and newsletter function. I will also
“Not to trust another human until he’s checked out by every kind of background check you can check.” That’s the lesson one entrepreneur unfortunately learned after a business partner mismanaged their ventures’ funds. His partner’s mismanagement had catastrophic consequences for their companies and employees. Does this mean you should hire
Entreprenuer.com recently published an article entitled “A Spartan’s Guide to Business” in reference to the blockbuster “300.” The article highlights 3 business lessons that are to be learned from the movie: Your CEO needs to be a strong leader. Train your employees and foster a culture that promotes loyalty. You
A leveraged buyout (“LBO”) is a strategy where someone acquires an existing company using a significant amount of borrowed funds. Typically, the assets of the company being purchased are used as collateral for the borrowed funds. This allows someone to acquire a company without having to outlay a lot of
In the world of mergers and acquisitions, a “basket” is the amount of damages that must be suffered by the acquiring entity before it can recover from the seller under the indemnity provisions of the acquisition agreement. Three main issues arise in drafting the basket clause: (1) Size–Typical basket amounts
According to the United States Department of Labor, reasons employers implement drug testing are to: Deter employees from abusing drugs and alcohol; Prevent hiring individuals who use illegal drugs; Provide early identification and referral of employees who have drug and/or alcohol problems; Provide a safe workplace for other employees; Ensure
