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 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 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
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MIT Academy of Engineering • 1y
Busting Startup Fundraising Myths: Why You Can Raise Money and Build Your Dream Company (Part 3) ⛔️ Myth: Raising money means losing control оf your company. ✔️ Reality: Seed rounds today give founders more control than ever, as SAFEs d
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