Monthly Archives: April 2014

The Rise of Activist Hedge Funds

        A hedge fund is run by a management firm that invests primarily in liquid assets and use leverage, or debt, to do so. Hedge funds have long been known as a unique investment vehicle because it mostly avoids the significant regulation that other private equity firms and mutual funds are exposed

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Back to the Basics: Incorporating Your Business

        Business entities can file for the status of various types, such as partnerships, limited partnerships, limited liability partnerships, and corporations. Each carries with it different rights, responsibilities, tax codes, and liabilities. A business will choose a certain entity on the basis of what benefits it the most in terms of these

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Types of Stock and Stockholders’ Rights

        The type of stock one owns in a company determines what rights that stockholder has with regard to his or her shares.  Owning stock in a company is a relatively simple concept as far as owning a piece, or equity of that company.  However, there are different types of stock a

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Choice of Law in Business Contracts

        When consummating any type of business contract, a necessary aspect of the negotiation is to agree upon provisions for how to handle any disputes arising out of the contract. Such a term is called a “choice of law” or “governing law” provision. This provision generally lays out what jurisdiction’s laws will

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Regulatory Approval of M&A Deals

        When companies or entities strike a deal on a merger or acquisition, it is an exciting time for at least one of the parties involved, as they see the prospect for growth, diversification and future profits. However, such jubilance must often remain tempered until every necessary approval comes through. This of

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Debt Restructuring by a Business

        Corporations sometimes run into trouble when it comes to their balance sheets. Due to falling revenue, economic downturns, or other circumstances, a company’s liabilities will be so burdensome that it cannot continue to function. In other scenarios, there may be a change in ownership of a company. In these cases, companies

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Initial Public Offerings On Fire

        A recent article in the New York Times details the tremendous increase in initial public offerings that have occurred in the U.S. as well as globally.  Citing Thomson Reuters, the worldwide fundraising through public offerings of new stock during the first quarter of 2013 hit $47.2 billion, which according to the

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Reverse Breakup Fees in M&A

In a prior posting, we discussed the details, advantages and disadvantages of breakup fees in the mergers and acquisitions context.  This centered on the typical arrangement whereby the seller or target entity would pay a fee to the purchaser if the deal were to fail.  In other circumstances, however, parties may agree to an arrangement

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