One of the most common mistakes that those who are new to venture capital make is to confuse value dilution and percentage dilution, two related but different concepts. Before diving into the two most common types of dilution (value and percentage), let us first understand...
Why Stakeholder Communication is Crucial Startups have become a vital driving force in today’s dynamic business landscape. As these young companies aim to scale their operations and secure long-term success, the importance of establishing and fostering fruitful relationships with stakeholders (which includes stockholders, optionholders and debtholders)...
It’s been a month since the California Payroll Transparency Law (SB 1162) went into effect. You ensured that on January 1, your company complied with the statute by creating salary ranges and posting the information on job postings. While you prepared for the law to go...
M&A purchase transactions can be successful in any economic climate for a buyer with a clear investment thesis that systematically and strategically: (i) prepares early and plans well; (ii) selects acquisition targets wisely; and (ii) executes his or her planned acquisition process with discipline and...
409A valuations can be one of the most confusing aspects of representing startups. One of the most common conversations I have with founders is that most companies want their 409A valuation to be lower rather than high. Why would a company want a low 409A...
The COVID-19 pandemic has brought with it several opportunities for businesses to access an unprecedented amount of government stimulus in the form of loans, grants, and tax credits. Most business owners are familiar with the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan...
On Friday, March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act or the “CARES Act”. The CARES Act creates a number of different programs that aim to support society and the economy during the COVID-19 public health and...
The Coronavirus disease 2019 (COVID-19) pandemic has created unprecedented upheaval in the American way of life. Widespread business and school closures, shelter in place orders and travel restrictions have disrupted the personal and commercial lives of millions. Uncertainty abounds and our clients must move forward...
On March 16, 2020, the State of California ordered gyms, health clubs, movie theaters and restaurants to close down as the state battled the spread of the coronavirus. The State’s order to close these businesses down raised the question of whether the businesses would then...
On March 18, 2020, President Trump signed the Families First Coronavirus Response Act (FFCRA). Importantly, the FFCRA is actually two separate acts, each of which imposes different employer obligations: the Emergency Paid Leave Act (E-Paid Leave Act) and the Emergency Family and Medical Leave Expansion...