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Are You Selling Your Company? Be Careful with Financial Buyers!

Scott Edward Walker

It matters because, unless you understand the motivation of a prospective buyer, it will be very difficult to make informed decisions with respect to critical deal issues. How Is the Deal Structure Different with a Financial Buyer? If you have never done a deal with a financial buyer, you are in for a rude awakening.

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5 Things To Consider Before Selling To A Private Equity Firm

YoungUpstarts

The CIM is a document that outlines the company being sold, its history, products and services, customers, financial performance, management team, and growth strategies. Out of thirty lookers, perhaps ten will submit an indication of interest (IOI). Like attorneys, you don’t want to skimp on tax advice either!

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The Corrosive Downside of Acquihires

Both Sides of the Table

And precisely because buyers usually prefer to have limited money go to investors – investors almost always have the ability to say “no” to transactions in the terms of their funding documents (aka “blocking rights”). Change industries. Not looking for quick flips.

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Keeping a Seed Financing Round Open

The Startup Lawyer

But in order to properly accomplish this, your startup will have to keep the round “open&# via the deal documents. But remember that while a lot of these deal structures are standard — each individual deal is unique. Therefore, most seed financings allow for an initial close (i.e.,

Finance 70
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Knowledge Is Power: Convertible Note Financing Terms, Part II

Gust

A term sheet keeps things relatively straightforward by summarizing the most significant deal terms in outline form, whereas the deal documents themselves (often referred to as definitive agreements ) — even for a relatively simple convertible debt financing — inevitably contain some densely written legalese.

Finance 79
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Acquihires 101: Tips for Founders

Scott Edward Walker

How is the Deal Structured? What Legal Documents are Utilized? Acquihires will typically entail the same process and the same documentation as any other acquisition: a letter of intent, a confidentiality agreement, a purchase agreement, etc. The appeal from the startup’s perspective is a “soft landing.”.

Founder 45
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Knowledge Is Power: Convertible Note Financing Terms, Part IV

Gust

To account for scenarios in which the startup is acquired before it has a chance to complete a priced equity financing round, most term sheets and deal documents contain a “ change in control ” provision. In Parts II and III, we looked at commonly used mandatory and voluntary conversion language in convertible notes.

Finance 79