4 Business Sale Deal Killers

Companies buy and sell all or part of other businesses on a pretty regular basis, but getting through the sales process isn’t always easy to do. There are plenty of times throughout the life of the transaction that things can easily go wrong, from the very initial discussion to sitting at the closing table itself. Although there are a lot of different reasons that the transaction may fall apart unexpectedly, there are some deal killers that pop up more often than others. Here are four ways a business sale can get derailed:

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5 Tips To Attract Private Equity

Companies of all sizes and in all sectors are almost always in need of capital infusions, at least at some point in their existence. These days, there are several interesting ways for companies to raise the funds they need. Private equity can be particularly helpful for companies looking to grow substantially, tap entirely new markets, acquire another entity, exit for a handsome sum in the future, and/or simply use capital to expedite any number of other, well-planned goals. But, obtaining an investment from a private equity firm is usually a lot harder than obtaining it from other sources. Companies hoping to leverage this potential avenue have to be at the top of their game. Here are 5 tips to attract private equity:

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Virtual Data Rooms: Everything You Need to Know

As the name suggests, a virtual data room, or as it is more frequently called, a “VDR,” is an online database in which companies can store and share confidential information, usually used during a financial transaction. It may also be described as a type of electronic repository or document filing system. With the ubiquitous reliance on computers and specialized software to keep a business running smoothly, coupled with the fact that more and more companies are making the transition to a completely paperless office, many of the previously document-heavy operational practices have been shifted to the virtual realm.

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Intellectual Property Due Diligence in Mergers & Acquistions

With mergers and acquisitions (M&A), it is likely that an overarching due diligence investigation will be required to allow the parties to the transaction to gain a strong understanding of the other side’s financial, corporate, and legal standing. This is a particularly rigorous process when there are substantial assets or significant risks at stake. In addition, in some transactions, there may be additional types of due diligence investigations needed, often in conjunction with or alongside the main process. For certain industries, usually anything associated with technology, this will normally entail a review of one or both companies’ intellectual property (IP). After all, many M&A deals are based on the innovative and invaluable aspects of a company’s IP. Here is what a company will likely need to provide and/or review to conduct appropriate IP due diligence:

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5 Common Startup Acquisition Mistakes

Acquiring another company, especially a promising startup, has become a bit of a competitive sport. Big enterprises are eager to capture larger and larger shares of a particular market, and a lot of companies want to expand their offerings by purchasing startups with an unrelated but highly lucrative focus. However, in the rush to snatch up the next big thing for the sake of a dollar, some important matters may be overlooked. No matter how exciting a prospective acquisition is, financially-motivated haste should never become the catalyst for a deal's downfall. There is a reason that successful businesses tout the principle that a slow and steady approach ultimately wins the race. Here are 5 common startup acquisition mistakes:

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The Best Way to Protect Private Documents: Not Exposing Them In The First Place

Data theft is alive and well, and for companies that fail to institute an appropriate document retention and management strategy, becoming a victim is all too likely. Even though technology is becoming more sophisticated every year, the cost of many solutions is actually declining due to fierce competition and the basic economic principles of supply and demand. As a result, there is really no excuse for any company, large or small, to neglect this facet of running a business. In simplest terms, if companies don't want private data misappropriated, then they shouldn't expose it in the first place. All it takes to achieve this is some planning, research, and a reasonable investment in the right technology. Here are the five key steps to take:

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How To Keep Your Intellectual Property Secure During Fundraising

Fundraising is generally unavoidable for startups and small businesses. This is particularly true in certain sectors where access to capital and equipment is crucial, such as life sciences and technology. Of course, these are industries that tend to be driven by intellectual property (IP) as well, so there is always quite a bit at stake when companies are in pursuit of a cash infusion and required to divulge company information to garner interest and dollars. It is likely impossible to avoid sharing all of a company's IP during fundraising rounds, as prospective investors need to have some sense of where their investment is going. But, companies can take steps before, during, and subsequent to any fundraising round to ensure that their IP remains secure.

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Why You Should Use Document Security, Not NDAs, To Protect Your Patents & IP

Signing a confidentiality and non-disclosure agreement (NDA) is fairly standard when joining or working with a company involved in technology, life sciences, and other innovation-driven industries. Competition is fierce in those sectors, and companies must ensure that valuable intellectual property (IP) is protected. Although NDAs are commonly used and generally necessary, they don't actually do much to keep data safe. For the most part, they really serve as a deterrent and afford a company recourse in the event that someone inappropriately uses or disseminates the information covered under the agreement.

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Will Your NDA Actually Protect Your Intellectual Property?

The simplest answer to this question is that it depends. Granted, that is not really an answer, but it really does depend on the strength of the NDA, as well as whether the party signing it correctly understands its requirements. Here are the reasons that NDAs often fail to fulfill their very purpose:

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Common Intellectual Property Mistakes Entrepreneurs Make

Innovation and intellectual property (IP) underpin the success of startups the world over. These days it seems like record numbers of individuals embrace the entrepreneurial spirit and are willing to risk everything that they have to see their dreams come to fruition. Unfortunately, for every company that thrives, there are at least ten others (probably hundreds) that fail for all sorts of reasons. One of these reasons relates to a company’s failure to utilize dollars wisely and/or protect important assets, especially unique IP. Here are common mistakes entrepreneurs make when it comes to IP and ways to avoid them:

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