Your acceptance of risk as an entrepreneur makes your personal balance sheet profile greatly different from most professions. You chose a non-W2 earning lifecycle where cash flows and earnings vary greatly. Financing a home as an entrepreneur warrants a mortgage lending discussion with a distinct understanding of atypical finances.
We recently spoke with partners at Fenwick & West, about the laws and regulations concerning compensation, how they’re applied to employee tender offers, and what steps companies can take to maximize the benefits to employees, and reduce cost and future risk.
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.
Liquidity opportunities require significant due diligence and create considerations applicable to a company’s valuation, accounting, tax, regulatory requirements, legal and human resources. Are you looking to liquidate private company shares? Take a look at the most important elements to consider on your path to equity.
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.