by annalawpc | Oct 5, 2021 | Business Deals
Customer Concentration Could lead to a significant discount off of sale price if the selling business has one customer that accounts for 25% or more of its revenue. One way to bridge a valuation gap is for the seller to obtain an earn-out of a percentage of...
by annalawpc | Oct 5, 2021 | Business Deals
Timeframe: M&A transactions are typically at least a four-month process, six months is common, and eight months is long. Structure and Potential Buyers: Asset or equity deal An asset deal is a deal in which the buyer buys certain assets, and excludes certain...
by annalawpc | Jul 30, 2021 | External General Counsel
Choice of Entity: Consider whether a S corporation election or LLC is appropriate. Both limit liability to some extent and both allow flow through single-level taxation. Some companies are now forming as an LLC to avoid the restrictions imposed on S corporations, such...
by annalawpc | May 9, 2021 | Contracts
Indemnification Indemnification addresses when one party pays for the other party’s losses or liabilities, such as losses caused by the other party’s breach of the contract. It can be a nuanced provision (i.e., does one party cover a loss caused by a subcontractor?...
by annalawpc | May 9, 2021 | Contracts
Forms: Create form contracts for frequently utilized contracts. Common examples include a form non-disclosure agreement, form supply contract and form client contract. Start Discussions with a NDA: Start contractual discussions, whether with a supplier, client or...