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.
I work on Contract D... • 1m
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 MoreI work on Contract D... • 1m
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 MoreLostBird :) • 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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