I was at a presentation recently on M&A exits for business owners. The question of earnouts came up, but although the panel was generally well-informed (I work for one of them, the managing partner of my firm, and with another, an accountant who works with several of our clients), they never clearly stated the fundamental…
Read MoreBuilding on the startup-oriented tools that Rick has published on his startup law website, we’ve created a simplified valuation framework for you. We’ve extracted this tool from financial models and valuations we’ve built for clients over the years. The multiples have to be adjusted for a specific business and market, but the current values are…
Read MoreToo much runway, and you may never take off. Here’s the write-up I saw in the Next Draft newsletter (hey there, Dave!) that pointed me to a story about Slack’s then-recent venture financing: Give me some slack … equity. The company’s product is about a year old. But investors just invested $120 million into Slack…
Read MoreAt one point years ago, my business partner and I were discussing how the arbitrator costs for a month of pre-hearing activity was 1/3 of our original out of pocket claim. What is the “deductible” on business claims? How expensive is it, really, to sue a business on a contract claim? And what are the…
Read More