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It is important that clients considering selling their business consider all options available.  One option is to sell the company to employees.  This can be accomplished through an employee stock ownership plan (ESOP).  An ESOP is an ownership interest in a company held by the company’s workforce. The ownership interest may be facilitated by the company as part of employees’ remuneration or incentive compensation for work performed, or the company itself may be employee owned.  If you are interested…
Joint Ventures can be a great way for a business to enter a new market or line of business.  There are quite a few items to consider.  Often the best partner for a Joint Venture is a competitor.  It will be important to define what will be shared, who will run the operations, who will own any intellectual property created, and the process to sell interests in the Joint Venture entity, among several factors. What…
Business clients sometimes ask why a Letter of Intent is necessary or advisable as part of the M&A process when most provisions are non-binding?  We understand that signing a Letter of Intent does not guarantee that a deal will close however it is an important step in the deal process. A Letter of Intent is important for several reasons:…
The first step in an asset purchase (or most deals) is a confidentiality agreement (also known as a non-disclosure agreement an NDA).  The next step would be working on a Letter of Intent.  A letter of intent (“LOI”) is a short document that parties to a potential transaction execute to establish expectations for the transaction and establish some ground rules for the negotiations moving forward.…
As a little kid with messy pigtails and thick glasses, I plopped into a booth at the Perkins Restaurant in Sioux Falls, South Dakota on many occasions. Located 50 miles from my little hometown of 2,143 people, my family found lots of excuses to stop by – hot coffee and dessert after piano recitals, early breakfast before our airplane flight, mid-day meals after doctor appointments. I don’t think I’ve ever been to Perkins without my…