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Liability for Non-Disclosure in Equity Financing

Harvard Corporate Governance

Notably, the damage payment received by the outside investors is offset in part by the reduced value of their equity stake. The investors make rational inferences based on the firm’s decision to disclose and, in case it is revealed that the firm hid material information, the investors can bring suit against the firm to recover damages.

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Solid Financial Reporting Can Help Attract Debt and Equity Financing

Machen McChesney

Timely, reliable reports can increase the odds that a bank will approve your company’s loan application and equity investors will provide capital. Lenders and investors will generally want to review your company’s financial statements before they give it money.

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Debt vs. Equity Financing: Which is better?

Equilest

Debt vs. Equity Financing: Which is better? According to the finance theory - there are two basic ways to finance the activity of a business - equity and foreign capital. Equity is an investment by owners who expect to receive an inevitable return for their investment. Infographic: Equity Vs. Debt.

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Elon Musk Plans $6.25B More In Equity For $44B Twitter Deal

Law 360 M&A

billion in equity financing to acquire Twitter Inc., Elon Musk on Wednesday promised an additional $6.25 according to a U.S. Securities and Exchange Commission disclosure, a move that comes just a week after the Tesla Inc.

Equity 98
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5 SaaS Financing Options to Extend Your Runway in 2023

Lighter Capital

Equity funding has its downsides, too — for many founders, it’s , not worth diluting equity and ceding control of the business for a few million dollars of runway. Convertible debt is relatively low-interest and converts into equity at a specified date (generally after a round of equity financing). Maturity date.

Finance 98
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Venture Capital: Side Letters in Emerging & Growth Equity Financings

John Jenkins

A recent Troutman Pepper Locke memo discusses some of the key issues associated with side letters entered into between VC investors and the portfolio companies in which they invest. The memo address three categories of rights that may be provided to a VC investor in a side letter: (i) rights that the company has already […]

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Navigating the Risk-Reward Equation in Mergers and Acquisitions: Unveiling the Dynamics of Financing Models

Sun Acquisitions

As organizations embark on these transformative journeys, one critical aspect that demands meticulous consideration is the financing model. The risk-reward equation in M&A financing is a delicate balance, where potential pitfalls and gains play a pivotal role in shaping the merged entity’s future.

Finance 59