The new tax law offers relief for some employees who might otherwise have been forced to hold options or let them expire because of a large tax bill. But the new code doesn’t remove every obstacle in the way of employee liquidity—and one provision ostensibly designed to do so looks like it will fall well short.
In order to conduct or facilitate a private tender offer, companies are often required to disclose confidential information they’re used to guarding closely. Learn more about what leading a tender offer may need to share the following with employee sellers.
We recently spoke to Craig Jacoby, legal specialist on secondary financing, about how companies should balance controlling their capitalization tables with providing liquidity opportunities to employees, and how to best manage some of the risk involved.
A decade ago, high-performing late-stage private companies had plenty of reasons to go public or sell themselves at year seven; solving for employee liquidity was not among them. Why it's important now.
Once the Founder’s Circle investment was conducted, there began the consistent flow of calls and conversations with Sam. The kind possible because Founders Circle was an investor in Elemental’s people rather than in the company.
Clients of the Private Bank may face reduced tax savings starting in 2017 due to new Treasury Department regulations. These new rules will impact many families’ estate plans, and we suggest that investors and executives review their current structures as soon as possible. Changes may not be needed immediately, but an assessment of your estate plan may be prudent.
Every day, we are asked by founders “How can I gain liquidity from my shares?” Generally, these individuals are looking for a loan against their private holdings, and we help them to determine which liquidity options would work best for them. This article explores some of the many ways that a founder can get the liquidity they need and continue to build their business for the long term.
The devastating events locally and globally this year have created heightened desire with many of our Private Bank clients to help. One way our clients do so is by donating equity with embedded capital gains to charity by the end of the tax year. With the current long-running bull market, many investors hold stock that has significantly appreciated in value. Additionally, the anticipation of tax changes and budget cuts make this a particularly good year for charitable donations. Here are three ways many of our clients maximize their charitable giving.
Great founders know the potential risks of doing business and accept or avoid those risks enthusiastically. However, many founders fail to protect themselves from financial risks, both personal and professional, that might be mitigated with the right policies. Proper insurance coverage can save time and money while providing peace of mind for the individual, loved ones and co-founders.
Raising capital to support their endeavors is a central concern for every entrepreneur. Even as a project succeeds and grows, the need for more capital continues. This challenge to raise capital takes on an even more nuanced progression in entrepreneurs' personal lives. The individual may have invested significant savings and sacrificed salary for sweat equity to get things going, and now, despite the progress and value creation, the entrepreneur faces an even greater need to access liquidity. But access to liquidity can be a challenge.
In our September article “Exploring Founder Liquidity Options”, we described some ways that founders are gaining liquidity from their private company shares. This article examines the role secondary markets play in gaining liquidity, for both founders and other constituents. There are many options when trying to achieve liquidity for private shares; however, it is important to understand the pros and cons and which strategies best fit a particular situation. Consider these questions to help you achieve your personal financial goals.