In the search for an investment property, one of the first things any investor will consider is the property’s ability to cover its own operation and debt costs. Your lender will be just as, if not more, interested, and their underwriting team will delve deeply into the property’s recent financials calculating the annualized Debt Service…
Category Archives: Business Transactions Blog
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Gaining Through Giving
Like most people, I can’t believe it’s time for another new year to begin, and the guilt-ridden, annual ritual of confronting last year’s resolutions that failed to materialize. Although a few of my resolutions never came to fruition, I did follow through on one commitment–to engage in more volunteer work assisting communities in need. I’ve…
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SEC Publishes Strategic Plan For Fiscal Years 2022-2026
On November 23, 2022, The Securities and Exchange Commission (“SEC”) released its Strategic Plan for fiscal years 2022 through 2026, detailing its mission, vision, values, and goals moving forward through the next four years. Three main goals guide the SEC’s plan: (1) protecting the investing public against fraud, manipulation, and misconduct; (2) developing and implementing…
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FTX Bankruptcy – House of Cards Falls
Securities lawyer Chris Barsness talks about the recent collapse of FTX and its exchange and the chapter 11 bankruptcy filing by FTX Trading and issues around regulations.
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506(b) versus 506(c)
506(b) versus 506(c) Section 5 of the Securities Act of 1933 requires all issuers to register securities with the Securities and Exchange Commission (“SEC”) unless an exemption applies. Almost every instrument utilized to raise capital is captured by this registration requirement. Regulation D serves as an important vehicle for certain companies to raise capital with…
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Kim Kardashian Settles With Sec For $1.26 Million For Violations Of The Anti-Touting Provision
On October 3, 2022, the Securities and Exchange Commission announced charges against Kim Kardashian for promoting a crypto asset security called EMAX, offered and sold by EthereumMax, on social media without disclosing the payment she received in exchange for the promotion. Kardashian agreed to settle the charges, paying $1.26 million in penalties, disgorgement, and interest,…
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Exits – IPO, M&A, Reverse Merger
Many people start companies because they are passionate about their idea, product, or vision. Investors love to see that passion in a founder, but they are obviously wanting a return on their investment. This is where exit strategies come into play, sometimes referred to as a liquidity event. You could lump things like a dividend…
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Valuation
Common models used to value a company, how these apply to startups, stock valuation, stock option valuation, and comparisons with US GAAP accounting valuation. Common Company Valuation Methods Market Capitalization Most people are familiar with terms like “market cap” if they have any interest in publicly traded stocks. Market capitalization is a method that can…