Special purpose acquisition companies (SPACs) help companies make the leap from privately held to publicly traded entities with less red tape and faster than an initial public offering (IPO). While a traditional IPO process can take several years, a SPAC can usually...
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Business Transactions
Pros and cons of accepting an earnout when selling a business
Earnouts are typically used in business acquisitions when the buyer and seller cannot come to terms on an upfront cash price. Instead, the seller agrees to accept additional payments after the sale closes as a way to bridge differences over the company’s valuation....
Federal regulators scrutinize large business mergers
On Jan. 18, the U.S. Department of Justice and Federal Trade Commission announced plans to tighten regulations and enforcement over illegal business mergers. The agencies will also ask for public comment on updating current federal guidelines guarding against unlawful...
New laws that may affect Texas businesses
As a new year begins, several laws passed by the Texas Legislature last year take effect. The new rules may have a wide-ranging impact on many facets of the lives of Texans. Businesses, however, have a duty to understand how they will contend with a new legal...
4 alternative ways to finance mergers and acquisitions
Buying or merging with a company is a popular strategy to make your company grow. However, such transactions can be costly and many entrepreneurs do not have liquidity to pay upfront or do not want to use up cash reserves. Instead of using your company’s profits to...
What to watch in 2022
The transition into a new year is always a good moment to reassess strategies for the last year and build for tomorrow. While savvy entrepreneurs are always on the lookout for new investments, the tumultuousness of the last few years can lead to some anxiety when...
Protecting yourself from unfavorable contracts
Many business people view contracts as being mutually beneficial, however, there may be circumstances under which a contract leaves one side at a distinct disadvantage. Often a contract is agreed after thorough negotiation with much forethought. Yet, negotiation and...
The importance of choosing the proper insurance plan for your business
Opening a new business is the culmination of a great deal of planning, much of it around securing financing and investors. There is a strong chance that your potential investors will require proper risk management before taking the leap. That means finding the ideal...
Automatic renewal clauses: don’t trap your company in an unwanted business relationship
Virtually all of us deal with contracts on a regular basis – from rental leases to employment agreements. One feature that has become increasingly common in many contracts – particularly for subscription services – is the automatic renewal clause. This is a provision...
2020 dings Texas oil and gas industry, but indicators hint at rebound
From our vantage here in Texas, we often look to the oil and gas industry for insight into the health of the greater economy. Oil and gas is a driving force here and the sector materially influences not just our state, but also countries and economies around the...