It feels like a sharp punch to the stomach – a physical reaction to the sudden realization that a longtime business partner’s actions have put the business at risk. This is not a disagreement over differing approaches to business issues. It is a full-blown crisis threatening the company’s continued existence. In these situations,...

Earn-out provisions in purchase contracts are “sweeteners” than can add significant value to the purchase price in the sale of private companies and these terms are increasingly being used in purchase contracts.  This Post explains why the use of earn-out provisions is on the rise in purchase contracts, but it also signals a...

“Power corrupts, but absolute power corrupts absolutely.”  This well-known quote from Lord John Acton in the late 1800’s is perhaps most often applied to dictators who managed to secure unbridled political control in their country.  The corrupting influence of power, however, can also be seen in private companies.  Some highly successful executives in...

Buy low and sell high.  Sounds simple – and attractive.  The buy low/sell high mantra is particularly enticing when applied to purchasing a minority stake in a private company, which has enormous growth prospects and the promise of huge potential returns.  The pursuit of these high returns, however, comes with steep risk factors...

Hiring the wrong people can quickly push a company off course, especially a growing private company.  This seems obvious, yet statistics show that companies do a remarkably poor job of hiring.  Gallup reports that, companies hire employees 82% of the time who have the wrong qualifications or who are not a good...

Private company business owners often feel pressured to hold the line on costs, and the pressure only increases as market conditions become more challenging.  At the same time, the billing rates for lawyers continue to escalate, sample forms of contracts can be found on the web for free, colleagues have contracts they are...

TOO MUCH FUN By Daryle Singletary Too much fun, what’s that mean? It’s like too much money, there’s no such thing It’s like a girl too pretty with too much class Being too lucky, a car too fast No matter what they say, I’ve done But I ain’t never had too much fun The lyrics of country songs...

It is no longer news to report that Texas has become a hostile forum for corporate (and other) plaintiffs who recover large jury awards.  For more than a decade, the press has featured numerous stories on Texas appellate courts (including the Supreme Court) overturning large jury verdicts after jury trials.  One of the...

Has it become riskier for private company business owners in Texas to conduct business when they enter into preliminary agreements with third parties?  Two high profile Texas jury verdicts in the past two years have made this a more frequent question.  In both cases (1) a Fort Worth lawsuit tried earlier this year...