AVOIDING THE GOTCHA AS A SELLER

Several recent experiences in midmarket M&A transactions have caused me to insist on an unusual representation and warranty from Buyers.  In some cases, buyer’s advisers are likely to conduct such extensive due diligence investigations that the Buyer may...

The Butterfly Reorganization

In a different article dealing with resolving shareholder disputes, I dealt with a couple of alternatives to resorting to litigation as a solution.  In some circumstances, particularly if the parties are capable of more reasonable discussion, and the nature of the...

Estate Freeze and the Capital Gains Exemption

The concept of an estate freeze has been the subject of considerable commentary for about 50 years, going back to when Canada first started taxing capital gains.  An estate freeze is a transaction in which the owner of an asset crystallizes and fixes the value of...

The Importance of Shareholder Agreements

Any business that has two or more shareholders or equity investors should seriously consider having a shareholder agreement to protect not only the shareholders but also the business itself.  Too often, the shareholders of a start-up business are reluctant to...