AI Review Isn't Enough

By rickColosimo / March 13, 2018 / Comments Off on AI Review Isn't Enough

I just read Ken Adam’s post on AI review of legal documents. In the case of services that offer contract templates, if I don’t know who prepared a template, I’m not going to trust it. Even if I do know, I’ll be skeptical unless given good reason not to be. I had this exact comment…

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Yes, you need a business plan

By rickColosimo / February 7, 2017 / Comments Off on Yes, you need a business plan

Every now and then someone who has an idea for a company or a product will ask me, “Do I really need a business plan?” I guess they read about seemingly ethereal companies raising huge equity rounds at mind-boggling valuations and believe the sizzle of “no business plan.” If you don’t have a business plan…

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Why are there earnouts?

By rickColosimo / February 4, 2017 / Comments Off on Why are there earnouts?

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…

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How do startup valuations work?

By rickColosimo / May 10, 2016 / Comments Off on How do startup valuations work?

Building 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…

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