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Archive for for May, 2017

Crowdfunding Isn’t the Only Way to Raise Money

May 25, 2017

We’ve heard a lot about crowdfunding. It’s been a hot topic for several years, with its fits and starts. It took a long time to get Securities and Exchange Commission approval and the regulations in place to allow crowdfunding. But crowdfunding isn’t the only way to raise money.

Crowdfunding –raising monetary contributions from a large number of people to fund a project or venture – is one of the tools in the tool chest, and it may be a great tool in many cases, but in some other cases, it may not be.… Read the rest

Don’t Focus on One Source of Capital

May 24, 2017

Many business owners make a mistake: They focus on one source of capital.

They hear about the new thing that other people are doing. Maybe it’s crowdfunding. Maybe it’s Regulation A+. Maybe it’s some other fad. The key for you as a business owner is not the source of the capital. It’s not what type of capital you get. It’s whether you get the right capital for your business and whether it meets your business needs.

The label attached to it doesn’t matter.… Read the rest

Who Does Your Lawyer Work For?

May 23, 2017

R. Shawn McBride recently spoke about the importance of knowing who your lawyer is representing. Here is the transcript:

https://www.facebook.com/rshawnmcbridepublic/videos/1464039750294593/

 

Hey folks, R. Shawn McBride here with you live with a very important question. Who does your lawyer or other service provider really work for? It’s a question not enough people ask. It comes up a lot in my practice when I work with business partnerships. What’s shocking is when clients are talking to me and other potential counsel, this issue is not being raised by other people, which really gives me some concern.… Read the rest

Co-Founder Agreements

May 22, 2017

R. Shawn McBride recently interviewed Anastasia Button about setting up co-founder agreements. Here is the transcript: https://www.facebook.com/rshawnmcbridepublic/videos/1459868234045078/

Ms. Button:     Are we live? (laughs)

R. Shawn McBride:  We are live. Hey everybody, I’m Shawn McBride, live here. I’ve got my friend Anastasia Button here with me. We’re going to be talking about setting up your agreements, co-founder agreements, making things really work in your business. It was a topic she kind of brought to me and something I’ve worked a lot with over the years.… Read the rest

Communicating with Your Lawyer to Keep Your Total Legal Fees Down

May 19, 2017

Every client wants to minimize legal fees, and a good lawyer wants to work side by side with a client to keep things managed and under control. Most of the lawyers I know want to form long- term relationships with their clients, and by helping the client understand the total fees and expenses and how the money’s being spent, you can help ensure a long-term client relationship. Clients aren’t going to be upset if they think you’ve treated them fairly.

What do we do to make sure that fees and expenses are fair and reasonable?… Read the rest

Enticed by a Distressed Company: Five Areas for Concern

May 18, 2017

Any acquisition is risky. We know, then, that a struggling company carries extra uncertainty. When clients call me because they are looking to buy a distressed company, we talk about the unknowns and the challenges of due diligence.

We review and resolve five areas of concern before taking on the risks of a company in trouble.

  1. Lawsuits. The possibility of lawsuits exists. How do the shareholders and board of directors or other control parties interface? Are they setting up each other for a lawsuit?
Read the rest

What’s an Investment Company in the Very Basics, and Why You Care

May 17, 2017

I was recently corresponding with a client who was throwing around the words “investment company,” and what they were actually forming was a company that was buying an asset. Saying “investment company” is something you want to be very careful about because it has a very specific meaning in the securities regulations under state and federal law. There’s, in fact, an entire act, the 1940 Act, which was enacted about investment companies. Of course, it’s been modified and updated since then, but there’s a whole set of laws about an investment company.… Read the rest

Employment Law: Gotchas to Avoid

May 15, 2017

R. Shawn McBride recently spoke with Cathleen Scott about Employment Law. Here is the transcript: https://www.facebook.com/rshawnmcbridepublic/videos/1478379978860570/

R. Shawn McBride with you live here and I have my friend Cathleen Scott who’s a great employment lawyer. Works out of California. Her firm also has offices in California. So we’ve been talking to her for a long time, we’ve known each other for a while and we’re always comparing notes and I thought it would be great to just sit down and talk to employers about what we’re seeing and mistakes people see in employment loss.… Read the rest

All postings are intended to be planning tools to familiarize readers with some of the high-level issues discussed therein. No posting is intended to be a comprehensive discussion and additional details should be discussed with your transaction planners including attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. This article should not be treated as legal advice to any person or entity.