Business Divorce Blog: Recent Blog Entries
Employee Ownership 101: Pitfalls for Employees as Minority Owners in Private Companies
On the face of it, the grant of minority ownership interests to key employees in private companies should be a win-win for both emerging companies and also for key employees of the business. The company offers an equity stake to key employees, but pays them modest, below-market compensation to help launch and grow the business.
Valuation 101: The Buck Stops Here—Valuing a Minority Interest in a Private Texas Company With a Contractual Buy-Sell Provision
As we discussed in our post on February 5, 2015, the wise investor recognizes the critical importance of a “corporate prenup” and will therefore insist on securing some form of buy-sell agreement before investing in a limited partnership, limited liability company, or closely held corporation.
When Duty Calls – What It Means to Owe Fiduciary Duties In Managing, Directing or Controlling a Private Company
Whether you are a company founder, a corporate officer or director, general or limited partner or simply an investor, if you are involved in a private company, it pays to understand the basics of fiduciary duties. The phrase “fiduciary duty” may conjure up images of a dusty, wood-paneled trust and estates department, but it is a critical element in the healthy functioning of a private company.