In a real-life case of adding insult to financial injury, companies harmed by the disloyal actions of their former partners, officers, managers or employees (the “former insiders”) may also have to pay their legal fees when the company sues them to recover for their misconduct. In this situation, if the company’s governance documents (and specific
As private companies grow, they need to secure capital to support their efforts to provide more (and/or better) products and services to their clients. The need for emerging companies to obtain growth capital often leads the majority owner to consider accepting an investment in the business by a private equity (PE) firm. In this post
When a married couple enters into a divorce proceeding, they generally expect to end things in a final decree that fully divides all of their marital assets. But when they fully own or have a large interest in a closely held, private business, for a number of reasons they may find that it benefits them
One of the thorniest issues private company owners and minority investors may be required to confront in going through a business divorce is determining the value of the minority interest being purchased. It is not unusual for experts to disagree over the value of the minority interest, and this conflict can delay or even derail