Money talks when the majority owners of private companies add new business partners who contribute additional capital. When these investors are high-powered PE firms or high-profile companies, with large balance sheets and...more
11/6/2024
/ Business Divorce ,
Business Ownership ,
Business Partners ,
Buy-Sell Agreements ,
Due Diligence ,
Investors ,
Majority Shareholders ,
Minority Shareholders ,
Portfolio Companies ,
Prenuptial Agreements ,
Private Company Shares ,
Private Equity Firms ,
Repurchase Options ,
Right of Redemption
Fast-growing private companies are exciting to observe as outsiders, but on the inside the company founder has the challenge of securing enough capital to fuel the rapid growth of the business. The company’s continuous need...more
Private company investing is inherently risky, but these risks can be mitigated if investors take proactive steps before making this type of investment. This due diligence action plan for potential investors includes the...more
Conflicts between co-owners in private companies are common, but the vast majority are worked out through dialogue and negotiation. When these internal conflicts cannot be resolved, however, minority investors may file suit...more
Family members who enter into a private business together are taking on double risk. They face the same types of challenges that all owners and investors face in operating/investing in a business, but they are also exposed to...more
Private growth companies have ups and downs – only rocket ships tend to go straight up. Therefore, it can be difficult for an investor holding a minority stake in a private company to know whether a challenging time for the...more
2/1/2023
/ Business Divorce ,
Business Litigation ,
Emerging Growth Companies ,
Investment ,
Investors ,
Majority Shareholders ,
Minority Shareholders ,
Partnerships ,
Private Company Shares ,
Private Equity ,
Private Equity Firms
The public markets were down last year, and private company values also took a hit. So, is now a good time for a new investment in a private company?
The best answer is it depends. There is never a bad time to invest in a...more
1/11/2023
/ Books & Records ,
Capital Investments ,
Client Funds ,
Disclosure Requirements ,
Employee Retention ,
Employees ,
Financial Reporting ,
Investment ,
Investors ,
Private Equity Firms ,
Private Equity Funds ,
Red Flags Rule
The “Great Resignation” as it has been called reflects the large number of employees leaving the traditional workforce, and many of those departing employees are leaving hourly or salaried positions to start their own new...more
3/29/2022
/ Acquisitions ,
Buy-Sell Agreements ,
Bylaws ,
C-Corporation ,
Corporate Counsel ,
Corporate Governance ,
Initial Public Offering (IPO) ,
Investment ,
Investors ,
Limited Liability Company (LLC) ,
Minority Equity Investments ,
Offering Documents ,
Risk Management ,
Startups
Private company majority owners and minority investors often focus on the company’s financial health and growth prospects, and may not take the time to review the operating documents of the business – bylaws for corporations...more