Hiring contractors feels efficient. Until a buyer reviews your company.
If classification is wrong, it doesn’t stay an HR issue. It turns into deal risk, affecting valuation, escrow, and negotiations.
Fix it before it gets priced into your deal.
#MergersAndAcquisitions
Legal audits before an LOI are no longer optional. Buyers expect readiness early-cap tables, IP, contracts, and governance are checked upfront. Catching issues early prevents delays, preserves leverage, and protects deal economics. Preparation drives outcomes.
#DealPreparation
Equity issued to early employees without approval may seem harmless-until diligence uncovers it. Ratification, legal review, and delays follow. Nothing changes in the business, but risk spikes, and leverage can shift. Fix governance early, protect your deal.
#DealExecution
Marketing your raise with 506(c) feels easy but every investor must be verified as accredited. Miss verification, and you risk compliance headaches, investor friction, and delays. Strategy first, execution aligned, and raise smoothly.
#CapitalRaise#LegalCompliance#Fundraising
Buyers check ownership early. Cap table clarity drives deals.
Unclear equity history slows transactions and impacts valuation. Early reconciliation avoids surprises and preserves leverage.
Review your cap table before going to market.
#CapTable#OwnershipClarity#ExitPlanning
Buyers check ownership early. Cap table clarity drives deals.
Unclear equity history slows transactions and impacts valuation. Early reconciliation avoids surprises and preserves leverage.
Review your cap table before going to market.
#MergersAndAcquisitions#ExitPlanning
Post-closing risk isn’t accidental, it’s negotiated at signing.
Representations, warranties, and indemnities determine what you really take home. Missteps can cost you money, leverage, and certainty.
Structure exposure early, not after the deal.
#MergersAndAcquisitions
Asset sale or stock sale?
Structure isn’t just about tax — it reallocates risk.
Cap table gaps, undocumented equity, and approvals matter.
Pick a structure that matches clarity, not convenience.
#MergersAndAcquisitions#DealStrategy#StartupTips
Closing is almost done. Check that change-of-control clause first. Customer consent might be required. Missing it can cause delays, lost leverage, and frustrated buyers. Execution discipline beats speed alone.
#DealExecution#MergersAndAcquisitions#FounderTips
Think paying a finder is harmless?
If their fee depends on funds raised, they might be an unregistered broker.
Later?
- Regulatory exposure
- Diligence headaches
- Investor rescission
Fix the structure before you raise it.
#StartupFinance#CapitalRaise#DealRisk
Worker classification matters more than you think.
Misclassified employees = wage liability, tax exposure, and deal delays. Buyers check early.
Fix classification before entering a deal. Protect valuation.
#MergersAndAcquisitions#BusinessRisk#StartupTips
Thinking of announcing your raise? Pause.
Public posts and press coverage can trigger extra compliance & verification requirements. Missed alignment = delays & risk.
Plan communication first. Structure protects your raise.
#StartupFunding#ComplianceMatters#CapitalRaise
Think your revenue moves with your company? Think again.
Contracts may have anti-assignment or consent clauses that buyers won’t overlook. Missed consents = uncertain revenue & deal delays.
Review key agreements early. Protect revenue.
#MergersAndAcquisitions#DealStrategy
Think you’re fully compliant with your raise? Even under federal exemptions, your investors’ locations matter. Miss a state filing today and it can cost you deals, delay transactions, and hurt valuation tomorrow.
#CatalystOGC#CatalystLegal#StartupFunding#Rule506
Equity promised, but not on paper?
An early advisor might legally claim a stake years later. Undocumented equity can delay deals, trigger legal review, and affect timelines. Document early to avoid surprises.
#CatalystOGC#StartupTips#EquityMatters#MergersAndAcquisitions
Signing an LOI? It might be costing you leverage. Most LOIs include exclusivity, meaning you’re negotiating with 1 buyer. Alternatives vanish. Pressure rises. Your leverage shifts.
Know your terms BEFORE signing.
#MergersAndAcquisitions#FounderTips#DealStrategy