Acquisition and (Start Up) Financing

A tailored approach

Due to the immense potential value of tech companies, parties are often eager to gain shares in tech companies. We can assist you in the share acquisition process. From drafting the share purchase agreement to a subsequent shareholder agreement between the new post-transaction partners, we are well versed in adapting acquisition documentation to the peculiarities of every specific transaction. Regardless of the size of the transaction or the nature of the parties, it is paramount to first diligently examine the potential financial and liability risks associated with an acquisition. Once the concerns are identified, the potential risks must be mitigated and minimized through the crafting of tailor-made warranties and indemnifications.

The Start Up Scene

The acquisition process merits additional care when it pertains to the purchase or issuance of shares in a Start Up. Due to the inherent inequality between the often vulnerable Start Up and the financial prowess of the (V.C.) purchaser, extra care should be applied to ensure the parties arrive at a well-balanced post-transaction contractual architecture. The capital deprived Start Up founder is generally too quickly eager to bend the knee. Not on our watch.   

We will ensure that founders are not brought in a position where they can be moved out of their own company by a new venture capital partner. We will see to it that the founder can continue to build his company in his vision. We will go to bat to prevent the new shareholder from amassing enough contractual powers (even as a minority shareholder) to veto the founder’s plans.

Bodies of corporate law, through non-voting shares, depositary receipts and other instruments, often offer the diligent mind sufficient ammo to successfully navigate an acquisition process and come out on top. We will help you get there.