Business planning : financing the start-up business and venture capital financing / Therese H. Maynard, Dana M. Warren.
2010
KF1355 .M39 2010 (Map It)
Available at Cellar
Formats
| Format | |
|---|---|
| BibTeX | |
| MARCXML | |
| TextMARC | |
| MARC | |
| DublinCore | |
| EndNote | |
| NLM | |
| RefWorks | |
| RIS |
Items
Details
Author
Title
Business planning : financing the start-up business and venture capital financing / Therese H. Maynard, Dana M. Warren.
Published
Austin [Tex.] : Wolters Kluwer Law & Business ; New York : Aspen Publishers, [2010]
Copyright
©2010
Call Number
KF1355 .M39 2010
ISBN
9780735577275
0735577277
0735577277
Description
xxv, 867 pages ; 26 cm
System Control No.
(OCoLC)560561751
Bibliography, etc. Note
Includes bibliographical references and index.
Record Appears in
Added Author
Table of Contents
Preface
xix
Acknowledgments and Editorial Note
xxi
1.
Introduction to Business Planning
1
A.
What Is "Business Planning"?
2
B.
Meet Our New Clients
5
C.
What Is an Entrepreneur?
7
What Is an Entrepreneur? / Don Hofstrand
10
A Practical Guide to Raising Capital / Stephanie L. Chandler
16
2007 Update: Raising the Initial Funding for High Technology Companies in the San Francisco Bay Area / Blake Stafford
18
D.
Thinking Like a "Deal Lawyer" vs. Thinking Like a "Business Litigator"
20
Representing Start-Up Companies / Robert Joe Hull
21
E.
Ethical Obligations of "Deal Lawyers"
22
1.
Who Is the Client? Multiple Party Representation
23
Waggoner v. Snow, Becker, Kroll, Klaris, Krauss
29
2.
Business Advice vs. Legal Advice
37
Recipe for an Overdue Change: Why Corporate Lawyers Sometimes Need to Give Business Advice / Martin B. Robins
37
3.
Lawyers That Invest in Their Clients
42
Taking Stock in Your Client: Strengthening the Client Relationship and Avoiding Pitfalls / Jeffrey L. Braker
42
When Lawyers and Law Firms Invest in Their Corporate Clients' Stock / Donald C. Langevoort
49
The Decline in Lawyer Independence: Lawyer Equity Investments in Clients / Robert J. Peroni
55
4.
Lawyers That Serve as Directors of Their Clients
58
Report and Recommendations of the Committee on Lawyer Business Ethics of the ABA Section of Business Law, The Lawyer as Director of a Client
59
2.
Choice of Business Entity
69
A.
Overview of the Key Attributes of the Different Forms of Business Entities
70
1.
Sole Proprietorship
70
2.
The (General) Partnership
71
3.
The Limited Partnership
74
4.
The Corporation
77
5.
The Limited Liability Company
80
Form and Function in Business Organizations / Richard A. Booth
82
B.
Non-Tax Considerations That Influence the Choice of Entity Decision
92
1.
Costs of Formation and Operation
94
2.
Liability for Business Debts --- Limited Liability vs. Personal Liability
97
3.
Management and Control
98
4.
Continuity of Existence
101
5.
Allocation of Profits and Losses and Payments to Owners
103
6.
Flexibility in Raising New Capital
107
7.
Fiduciary Duties
108
8.
Transferability of Ownership Interests
110
C.
Tax Considerations That Influence the Choice of Entity Decision
112
Choice of Entity: Considerations and Consequences / Sanford Holo
112
Choosing the Proper Form of Organization for a New Business Venture / Charles A. Wry, Jr.
122
3.
Overview of LLC Law
129
A.
Development of LLC
130
The Limited Liability Company Experiment: Unlimited Flexibility, Uncertain Role / Wayne M. Gazur
130
Sorting Through the Soup: How Do LLCs, LLPs and LLLPs Fit Within the Regulations and Legal Doctrines? / Daniel S. Kleinberger
138
Entity Rationalization: A Judge's Perspective / Jack B. Jacobs
141
B.
Formation of an LLC
146
Those Delaware LLCs---Another Look: How They Could Work for You / Fredric J. Bendremer
147
C.
Preparation of LLC Operating Agreement: Analysis of Management Rights
155
Elf Atochem North America, Inc. v. Jaffari
155
Taghipour v. Jerez
163
D.
Fiduciary Duties in the Context of LLCs
168
The Fiduciary Duties of Directors of Corporate General Partners, Ten Years After USACafes / Robert B. Robins
168
Corporate Directors, LLCs and Liability: It's Not Settled, But Caution Is Advised / Alison N. Zim
171
Freedom of Contract, Fiduciary Duties, and Partnerships: the Bargain Principle and the Law of Agency / J. Dennis Hynes
177
Judicial Scrutiny of Fiduciary Duties in Delaware Limited Partnerships and Limited Liability Companies / Myron T. Steele
190
McConnell v. Hunt Sports Enterprises
203
E.
Oppression: Remedies for Dissension and Deadlock
209
What Buy-Out Rights, Fiduciary Duties, and Dissolution Remedies Should Apply in the Case of the Minority Owner of a Limited Liability Company? / Sandra K. Miller
209
Haley v. Talcott
212
4.
Selected Issues Under the Federal Securities Laws
223
A.
The Scope of the 1933 Act
223
1.
Definition of "Security"
224
B.
Overview of Exemptions from the Registration Requirement of 1933 Act
227
1.
Wholly Intrastate Offerings: Section 3(a)(11) and Rule 147
228
2.
Statutory Private Placements
229
3.
Regulation D
231
Outside Bucks: A Practical Guide to Raising Capital for a Business / William W. Barker
235
4.
Restricted Securities and Rule 144
240
a.
What Are "Restricted Securities"?
240
b.
Rule 144 and Its Recent Amendments
241
Thrower, Keeping Current: Securities---SEC Amends Rules 144 and 145 / Meredith Sanderlin
241
5.
Regulation A
243
6.
Rule 701 and the Google IPO
244
In the Matter of Google, Inc. David C. Drummond
245
Securities Enforcement: Searching Google for Meaning: Equity Compensation Pitfalls and a Changed Climate for Lawyer Responsibility / Stanley Keller
249
C.
Role of the Lawyer After SOX in Planning Financing Transactions
256
Lawyer Liability: Why the SEC Should Clarify Policy on Its Actions Against Attorneys for Advising Clients / Stephen P. Warren
256
D.
State Blue Sky Laws and the Uniform Limited Offering Exemption
263
5.
Incorporation Process
265
A.
Introduction: Choice of State of Incorporation
265
B.
Preparing the Articles (Certificate) of Incorporation: Herein of "Private Ordering"
267
1.
Corporate Name
267
2.
Statutory Requirements: Mandatory vs. Optional Provisions
267
3.
Agent for Service of Process
269
4.
Statement of Purposes, Powers, and/or Duration
269
5.
Statement of Authorized Capital
270
6.
Incorporators and Initial Directors
270
7.
Signature
270
8.
Optional Provisions
271
9.
Amendments to the Articles of Incorporation
273
C.
Organizational Meeting
274
1.
Initial Board of Directors
274
2.
Preparing and Adopting Bylaws
274
3.
Issuance of Shares
275
D.
Capital Structure of the New Corporation
275
1.
Number and Classes of Shares
275
2.
Consideration
275
3.
Par Value
276
4.
Issuance of Shares
277
5.
Voting Rights
278
6.
Dividend Rights
278
7.
Rights on Dissolution: Herein of Liquidation Rights
281
8.
Redemptions and Repurchases
283
9.
Conversion Rights
283
10.
Preemptive Rights
284
11.
Blank Check Shares
284
12.
Restrictions on Transferability of Shares
285
E.
Role of Shareholders
286
1.
Shareholder Meetings
286
2.
Action by Written Consent
288
3.
Shareholder Voting Process
288
4.
Election of Directors
290
5.
Removal and Resignation of Board Members: Filling Vacancies on the Board
292
6.
Shareholders Rights of Inspection
293
F.
Role of Directors
293
1.
Meetings of Directors
294
2.
Fiduciary Duties of Directors, Officers, and Controlling Shareholders
296
A Review of Fiduciary Duties in California and Delaware Corporations / Edward Gartenberg
296
G.
Choice of State of Incorporation ---Delaware vs. California
303
Guide to Starting a Corporation
304
VantagePoint Venture Partners 1996 v. Examen, Inc
310
6.
Equity-Based Compensation: Stock Options, Incentive Compensation, and Related Founder Issues
319
A.
Stock Options Generally
321
1.
What Is a Stock Option?
321
2.
Granting an Option
322
3.
Term of an Option and Vesting
323
4.
Exercise Price
326
5.
Exercising an Option
327
6.
Accounting Treatment for an Option Grant
327
B.
Nonqualified Stock Options
330
1.
The Default Form of Option
330
2.
Tax Treatment of NQSOs
331
3.
Effect of I.R.C. [∫]409A
333
C.
Incentive Stock Options
337
1.
Special Requirements for ISO Treatment
337
2.
Tax Treatment of ISOs and Disqualifying Dispositions
341
D.
Restricted Stock
346
1.
Restricted Stock Compared to Stock Options
347
2.
Application of Section 83
348
3.
The [∫]83(b) Election
349
4.
Application of Restricted Stock Concepts to "Founder's Stock"
354
E.
Other Equity Incentive Mechanisms
357
1.
Employee Stock Purchase Plan
357
2.
Phantom Equity Plans
358
F.
Common Contractual Variations for Stock Options and Restricted Stock
360
1.
Equity Incentive Plan Options and Restricted Stock
360
2.
Variations for Repurchase Rights Applied to Founder's Stock
366
3.
Other Founder's Stock Issues
368
7.
Intellectual Property Protection---A Primer for the Non-Expert
371
A.
What Is Intellectual Property?
371
1.
Introduction to Intellectual Property
371
2.
Trade Secrets
372
3.
Patents
377
4.
Copyrights
381
5.
Trademarks
385
B.
Protecting Intellectual Property by Contract
390
1.
Third Party Non-Disclosure Agreements
390
2.
Confidentiality and Invention Assignment Agreements
401
C.
Intellectual Property Protection and the Early Stage Company
417
8.
Overview of Venture Capital
419
A.
Capital: What Is It and Who Needs It?
419
1.
Introduction to Capital
419
2.
The Need for Capital
420
B.
Capital: Where Do You Find It?
420
1.
Self-Funding
421
2.
Friends and Family Financing
422
3.
Outside Investors ---Alternatives to Professional Venture Capital
423
C.
Capital: What Must You Give to Get It?
427
1.
Capital for Debt
428
2.
The Structural Limitation of Debt
429
3.
Capital for Common Stock
430
4.
Capital for a Debt/Equity Combination
431
D.
Venture Capital and the Venture Capital Investor
434
1.
Introduction to Venture Capital
434
2.
Recent History of the Venture Capital Industry
436
E.
The Venture Capital Fund
437
1.
Fund Structure
437
2.
The Limited Partners
440
3.
Operating the Fund
443
4.
The Economics of Venture Capital Investing
446
F.
Taking on a Venture Capital Investment
458
1.
Preparing a Company for Venture Capital Investment
458
2.
Making Venture Capital Investment Work
460
9.
Venture Capital Financing --- Preferred Stock Attributes
469
A.
Overview of Convertible Preferred Stock
469
1.
Classes of Equity Securities
470
2.
Preferred Stock --- Charter vs. Contract Rights
471
B.
Dividend Preferences
473
1.
Dividends Generally
473
2.
The Dividend Priority Preference
474
3.
The Dividend Participation Right
476
4.
Cumulative Dividends
480
C.
The Liquidation Preference
482
1.
A "Liquidation"
482
2.
The Liquidation Priority Preference
486
3.
The Liquidation Participation Preference
499
D.
The Conversion Right and Anti-Dilution Protection
517
1.
The Conversion Right
517
2.
The Effect of Dilution
527
3.
Dilution to Participation Rights
531
4.
Dilution to Economic Value --- Price Protection
543
E.
Redemption Rights
566
1.
The Statutory Treatment of Redemption
566
2.
Redemption as Part of Venture Capital Financing
571
3.
Redemption Provisions in the Charter
573
F.
Voting Rights
579
1.
Voting as a Participation Right
580
2.
Director Election Rights
581
3.
Protective Provisions
585
Benchmark Capital Partners IV, L.P. v. Vague
592
4.
Blank Check Provisions
600
10.
Documenting the Transaction; Venture Capital Financing Agreements
605
A.
"Pre-Contract" Contracts: Use of Letters of Intent and Non-Disclosure Agreements
605
1.
Overview
605
2.
Use of Non-Disclosure/Confidentiality Agreements
606
3.
Issues Regarding the Letter of Intent
606
Arnold Palmer Golf Co. v. Fuqua Industries, Inc.
606
It's a Question of What's Binding: A Look at Letters of Intent / Gregory Gosfield
611
B.
Venture Capital Investment Documents
617
1.
Overview
617
2.
The Preferred Stock Purchase Agreement
618
3.
Due Diligence and the SPA
624
4.
The Amended and Restated Charter
628
5.
The Investor Rights Agreement
628
Key Considerations in Drafting a Registration Rights Agreement from the Company's Perspective / David A. Kanarek
631
6.
Right of First Refusal and Co-Sale Agreement
653
7.
Voting Agreement
661
8.
Closing Checklist
668
Appendix A
Homework Assignments
673
Appendix B
Documents
699
Index
853