Tip of the Month

Our friends over at Perkins Coie have shared some mergers & acquisitions tips for bootstrapped and early-stage technology startup companies:

1. Stay active in maintaining good records. Keep your records in an organized and electronic format in order to easily share and monitor them. You want to be ready to handle the detailed, lengthy, and invasive due diligence process.

2. Maintain credibility. Problems and issues with disgruntled individuals, or imperfections with your IP title or taxes can potentially cause others to re-evaluate your business. Be sure to come clean about any of this in the early stages, as acquirers will ultimately dig up these issues.

3. Talk to your advisors and educate yourself about the process. Both your bankers and your lawyers are experts in structuring transactions. Work with each to maximize your understanding of the process and the deal structure that is optimal for you.

4. Maintain control of the process. Identify the key executives and advisors who will be your core M&A execution team and meet with them on a regular basis to make sure that the transaction is progressing in a manner you’re comfortable with.

5. Pay attention to details. Look for hidden values and costs, and search for hidden terms that can have a significant impact on the bottom line economics.

Take a look at the Perkins Coie blog for more advice from Lior Zorea on this topic.

 

 

In the Community

ACLU of Washington’s High School Student Conference on Civil Liberties: Focal was happy to help out by presenting in the ACLU of Washington’s high school student conference on civil liberties.

University of Washington’s Entrepreneurial Law Clinic (ELC): Focal PLLC is proud to be participating in the University of Washington’s Entrepreneurial Law Clinic (ELC). You can find more information about the ELC here.

Hoang v. IMDb: Venkat attended and covered (for The Hollywood Reporter’s “THR, Esq.” blog) the trial resolving claims asserted by an actress against IMDb: “Actress Suing IMDb Takes the Witness Stand“; and “Actress Suing IMDb Faces Tough Questions on Second Day of Trial.”