Legal Advisor! • 1y
Understanding Shareholder Agreements (SHAs) in M&A Did you know that the terms of your Shareholder Agreement (SHA) depend on the level of your stake acquisition in a company (SPA)? Here's a general overview of how SHAs differ based on acquisition type: ●Minority Acquisition (Less than 20%): SHAs protect minority shareholder rights, like board observer rights. ●Significant Acquisition (20-50%): SHAs offer greater control rights, like limitations on certain actions by the majority shareholder. ●Majority Acquisition (Over 50%): SHAs may address control transfer, including appointing new directors or management. ●Full Acquisition (100%): No SHA needed as the buyer gains complete ownership. Need help with drafting or reviewing your SHA? Drop an email at saksham@bebyond.com.
Honorary Mentions - ... • 1y
As a founder, your startup is your baby. But what about when that Golden Exit opportunity appears? Drag-Along Rights in your Shareholder Agreement(SHA) are crucial for ensuring a smooth acquisition process. What are Drag-Along Rights? They empower
See MoreHonorary Mentions - ... • 1y
We've covered dilation and the Board of Directors(BOD). Now, let's delve into Tag-Along Rights—An Essential Topic Imagine your startup takes off! A major player wants to buy the company, and your majority shareholder is ready to cash in. But what ab
See MoreI work on Contract D... • 14d
Ever been part of a group trip where one person books the tickets — and everyone else has to follow along, even if they didn’t fully agree? That’s pretty much what Drag Along Rights do in the startup world. If a majority shareholder decides to sell
See MoreHonorary Mentions - ... • 1y
Last time we discussed dilution in SHAs. Today, we tackle the Board of Directors (BOD)! The BOD: This group oversees your startup's big picture strategy. The SHA defines how many board members there are and how they're chosen. Why it matters: Havin
See MoreI work on Contract D... • 13d
Ever seen someone get a wedding invite — and they bring a plus-one who wasn’t invited but gets all the same perks? That’s exactly what Tag Along Rights do for minority shareholders. If the majority is selling their stake to an investor, you — as a mi
See MoreHonorary Mentions - ... • 1y
Starting a startup is exciting, but understanding the shareholder agreement (SHA) is crucial. Today, let's focus on Dilution. What is dilution? Imagine you and a friend each own half a pizza (50% each). If you bring another friend in and share more
See MoreDownload the medial app to read full posts, comements and news.