Accounting For Every Action
As your startup takes off, there are a variety of business transactions for which you need to be prepared. From mergers and acquisitions to spinoffs and stock splits, these issues can present unique challenges, and you’ll need a business transactions attorney to help you navigate each situation. This might sound overwhelming at first, but by working with a knowledgeable business transactions lawyer like me, Phil Magri, you can come to a smart resolution for your company.
Mergers and Acquisitions – Coming Together or Taking Over
Every day, business mergers and acquisitions take place. Whether two businesses are becoming one or one company is buying out another, there are many legal issues involved to make sure the process goes smoothly. The only way to guarantee these actions go off without a hitch is by using a mergers and acquisitions attorney.
An M&A lawyer, like The LaunchUp Lawyer, can help your business navigate your mergers and acquisitions. It doesn’t matter if your company is the one being bought out or if you’ve decided to blend your startup with a competitor’s company, an M&A attorney will make sure your contract abides by the laws of your state and protects all parties involved.
Spinoffs – When One Company Can’t Do It All
A corporate spinoff occurs when a company takes a division of their organization and creates an independent business entity. The parent corporation generally supports the spinoff, which can include providing technology, employees, and other assets to the new venture. The parent company might even decide to be the new business’ first customer to help it generate income and build a reputation.
If you’re considering a spinoff company, you need to consult an experienced startup law firm. This process can be complicated, and you need to make sure you’re following not only the laws in your state but also the regulations of the SEC. After all, the last thing you want is the feds knocking at your door as you’re trying to manage both your core business and your spinoff.
Stock Splits – Dividing to Multiply
If you’re trying to boost the liquidity of your stock shares, splitting your stock could be worth looking into with your startup business attorney. Wondering how it works and how it can benefit you? Let’s break it down:
When a company goes public, it’s selling a set number of shares. By splitting your stock, you can increase this number and issue more shares to your current stockholders as a dividend. Not only will this make your stock more affordable to small investors, but it can also increase the demand for your stock and drive the prices higher. This is good for your company and your investors. The thing is, this process is full of decisions that are best made with your startup law firm. It also works in reverse if there are too many shares outstanding and you want to do a reverse stock split to increase the trading price of the shares.