Experienced Results in Corporate & Business Law.
Our client, a $30 million, multi-state manufacturing corporation, asked us to work with them on their re-organization. We structured a stock-for-stock exchange and valuation guidelines for consolidation of the corporation's multiple satellite entities into a Holding Company. We also guided the executive leadership through the tax and operational consequences of the new corporate structure.
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Our client came to us as their emerging business was skyrocketing based on some positive high profile visibility. They were bombarded with offers to trade ownership of the company in exchange for services, and a host of other "deals". We first persuaded the client to step back and evaluate options, then worked to structure the organization and protect ownership rights. We continued to guide the client in growing the business.
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A shareholder dispute had already been litigated and settled by another firm. The former attorney had erred in making representations that our client could perform certain actions pursuant to the settlement. As a result, our client was sued again by his former partner who believed that his original investment should have yielded a greater value after the company went public.
We established that the former partner really wanted more money, not stock, which allowed us to hone in on what would appease both parties. We also alerted our client to the potential risks, including the unknown basis for the stock's valuation should he be required to transfer stock to the former partner. Identifying this risk, along with our ability to see both side's perspective, facilitated a settlement.