Is your company facing liquidity problems? Is it lacking capital to continue operating? Perhaps even to grow?<\/p>\n\n\n\n
No problem \u2013 just inject immediate capital into the company in exchange for a portion of the company's shares. The company might be 'a little less yours,' but without cash flow problems.<\/p>\n\n\n\n
Magic solution? Wait!<\/p>\n\n\n\n
You opened the door to the company. Who will enter?<\/p>\n\n\n\n
Acquisition of control of a company is usually accompanied by obtaining a seat or seats on the board of directors, where important decisions are made.<\/p>\n\n\n\n
Are you sure the new partner will help you take the company where you want it to go? Maybe the opposite?<\/p>\n\n\n\n
And what happens if the new partner also decides they need available cash? What happens if they sell the shares they acquired from you to someone else? Perhaps to several different parties? And what will be your position regarding the company's management? Its goals?<\/p>\n\n\n\n
Will you recognize your girlfriend tomorrow morning?<\/p>\n\n\n\n
Please be aware that an uncontrolled sale of shares, without this action being accompanied by an agreement drafted to protect your position against new shareholders, can very quickly lead to severe disputes between the different shareholders in the company, and from there, it is a short path to the company losing its way, stagnation in its operations, and even its failure and ruin.<\/p>\n\n\n\n
So what do we do? Don't embark on an adventure with someone else before first consulting with a lawyer who specializes in advising companies and has experience in preparing investment agreements.<\/p>\n\n\n\n
Only a lawyer like this will know how to incorporate mechanisms (such as: restrictions on share transfers, rights of joinder, dispute resolution mechanisms, and so on) into the investment agreement that will protect you and minimize the uncertainty and risks involved in this significant step in the company's life.<\/p>\n\n\n\n
We invite you to contact us to clarify any questions.<\/p>\n\n\n\n
Adv. Dov Kerner 052-6371983<\/p>","protected":false},"excerpt":{"rendered":"
Is your company experiencing liquidity problems? Does it lack capital to continue operating? Perhaps even to grow? No problem \u2013 simply inject immediate capital into the company in exchange for a portion of the company\u2019s shares. The company might be 'a little less yours,' but it won't have cash flow problems. A magic solution? Wait! You've opened the door to the company. Who will enter? Acquiring control of the company is usually accompanied by taking a seat or\u2026 <\/p>\n