Business financing is significantly different than personal financing. As a person you can go to your bank and apply for a loan. The bank will review your credit score and history, verify your employment, then appraise the value of the collateral you are offering to secure the loan, before making a lending decision. When your…
Continue reading ›Conducting due diligence is a common practice in the business and legal industries, but what is it and why is it considered necessary in establishing workable relationships? It is a comprehensive, systematic investigation of a business, investment, or legal partner to evaluate legal risks, verify financial data, and confirm operational realities before finalizing a deal.…
Continue reading ›You received counsel from a business lawyer when you started your business, to draft the agreements, obtain the necessary licenses, and choose the right organizational structure. Now you are ready to expand your business to serve more customers and increase your profits. You are now an experienced businessman so you should be able to do…
Continue reading ›If you are considering purchasing a business or a merger with another business, maybe you are thinking you can handle the whole transaction with one comprehensive contract. Something like Congress did with the One Big Beautiful Bill. Hold on. That is a bad idea for two main reasons. First, when the contract is completed and…
Continue reading ›The Foreign Corrupt Practices Act of 1977 (FCPA) prohibits U.S. companies and individuals from offering or paying bribes to foreign officials in order to obtain or retain business advantages. The law applies to conduct occurring both outside and within the United States and broadly covers the use of mail or any means of interstate commerce in furtherance…
Continue reading ›After a few years of declining merger and acquisition (M&A) activity, transaction volume is beginning to rise again, making this an important time for companies to prepare for potential deal opportunities. Whether a company intends to expand through acquiring additional products or services or seeks to combine with a complementary business, preparation is essential to…
Continue reading ›When two companies begin exploring a potential merger or acquisition, each must gain access to sensitive information about the other in order to evaluate the proposed transaction. At the same time, both parties must protect their own proprietary information, including operational data, strategic plans, financial records, and confidential information relating to customers, suppliers, and employees.…
Continue reading ›What Are Valuation Strategies in a Merger? When companies decide to merge, one of the most critical—and often contentious—issues is determining the value being exchanged. While it may seem like a straightforward financial exercise, company valuation is rarely simple. Multiple valuation methodologies exist, and parties often disagree over which factors deserve the greatest weight. Differences in…
Continue reading ›Mergers and Acquisitions Explained Mergers and acquisitions are an integral part of how industries are shaped. They can allow smaller companies to better compete with larger established companies or consolidate market share to increase profits. Being acquired can also offer a smaller business a less costly route to become a public company. The terms, merger…
Continue reading ›Alexis King On February 14, 1975, Commissioner of Corporations of the State of California, Willie R. Barnes, issued a release on Repurchase Offers that commented on Section 25507 (b) of the Corporate Securities Law of 1968.(link to release)This release also discussed Rule 260.507 of the California Code of Regulations in the context of the rule’s…
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