company formations
Kevin Hendricks has learned over the years that it's relatively easy to start a business, but the challenge is to maximize the likelihood that the owners will be "on the same page" when the inevitable difficulties arise. Kevin likes to spend time with owners discussing their goals and how they might deal with particular challenges, including how to address an impasse. Kevin helps multiple owners think through a number of issues, including the following:
- What are the ultimate goals of the owners – creating a multi-generational business or creating value for a liquidity event?
- Who will make day-to-day decisions vs. strategic decisions?
- How will the company be financed, and will the owners be required to invest additional capital or guarantee debt?
- How will owners be compensated?
- What happens if one of the owners no longer wants to work full time?
- Will any employees be given equity-based compensation?
Case Study: Three people decided to start a high growth services business. One person would be the chief executive officer and could bring his share of funds necessary to get the business on its feet. Another person would also be involved in the operations, but lacked significant funds. The third person was an outside investor who was looking solely for financial return. Kevin helped put together an arrangement that allowed the "junior partner" to earn additional equity in the company and provided for an orderly process for the two people operating the business to buy out the financial investor on terms fair to everyone.
Over time, some business owners may want to be bought out and some new ones may want to buy in. entrepreneurs law group helps companies and individual business owners think through the issues.
Descriptions of prior transactions or case studies are for informational purposes only. Past success does not indicate the likelihood of success in any future legal representation.
