Entrepreneurs are passionate about their business. Sometimes overly so. Read this terrific article on how to avoid several common mistakes that will ruin an otherwise successful pitch meeting. From FastCompany, by FC Expert Blogger Josh Linkner, 12/6/11
I received this brief summary from Elizabeth Burnett and Jehanne Bjornebye at Mintz Levin and found it interesting. Several questions about the rights of shareholders and their conflicting rights as fiduciaries are addressed in the recent Superior Court decision Merriam v. Demoulas Super Markets, Inc. It's instructive.
There are at least five reasons why restricted stock grants remain appealing for a variety of companies, large, medium and small: (1) it’s real stock; (2) it creates a meaningful element of employee retention; (3) the income tax consequences are straightforward; (4) the grantees really do have skin in the game; and (5) an employer can add features that help preserve the control of the current owner(s).
This is an insightful blog post by Chris Dixon (www.cdixon.org)... "Having raised a number of VC rounds personally and observed many more as an investor or friend, I’ve come to think there are a set of dominant best practices that entrepreneurs should follow..."
I received this e-mail from Steven Goldberg, an M&A attorney at the law firm of Baker & Hostetler LLP. Steve argues that a management led buyout (MBO) can be good for company shareholders if the company engages in a fair auction. A fair auction can occur through various means. I found it both timely and thought provoking, and wanted to pass it along.
Apparently Martha Stewart's fall from grace in 2001 (which stemmed from an insider trading scandal that netted all of $45,673) wasn't enough of a cautionary tale to David Sokol.
From Forbes: The DOJ’s and SEC’s more stringent enforcement of the FCPA has important implications for mergers and acquisitions. According to Rebekah Poston, an expert anti-corruption practitioner at the international law firm Squire Sanders & Dempsey, American companies who neglect to conduct thorough due diligence when acquiring foreign companies risk inheriting or creating FCPA violations. Acquiring a foreign company requires the performance of a number of affirmative duties on the part of the acquirer.
Deal activity was down from Q1, but there were positive signals as well.
Price-to-Earnings Ratios have been falling for blue chip companies amid the current downturn. The reason? Uncertainty about future earnings.
One of the primary complaints about venture capitalists is that the "value add" they promise when they submit an LOI is akin to a campaign promise. In today's market, VCs haven't been able to exit many of their investments, so instead of serving on 3 or 4 boards, they may be serving on 6 or 8.
December 7, 2011
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