Equity, Mergers etc.
Equity
We provide equity transactions legal services for our clients. We have since 2003 advised our clients on capitalization issues such as start up financing, private placements, initial public offerings and issuance of shares etc.
Capitalization and funding of a videogame studio is a key component of videogame business development. Negotiation financing agreements and obtaining funding is a complex field of law. Private investors are often very experienced and drive a hard bargain when it comes to terms and conditions for equity financing. Angel investors are often anything but angels when they are presenting investment term sheets, investment agreements, shareholder agreements and negotiating contracts. Unless a videogame studio has a great legal advisor, it may end up signing agreements with unfavorable terms and conditions. Or even worse, since many equity investors are from other countries than the videogame development studio seeking funding, they may demand terms that are either illegal in the home country of the videogame development studio or will contain terms that cannot be registered with the domestic company registration agency. This results in long delays before terms can be revised to comply with the domestic company laws and could even lead to the equity financing deal being terminated or abandoned. Thus, great legal advice can save equity deals and/or make them better for the videogame studios and its founders and shareholders.
Mergers and Acquisitions
Sometimes founders and shareholders of videogame studios want to make a merger with another videogame studio or publisher, be acquired or acquire another company. We have for example helped founders and shareholders sell their videogame studios to other developers, publishers and/or software companies for $ 100+ MUSD per transaction, for example when they have received great unsolicitated offers, or when they have actively sought to make an exit.
Time is of the essence when it comes to mergers and acquisitions and knowing what terms and conditions are negotiable and which are not can make or break a deal. So the right legal advisor is key when making such deals.
Equity, Mergers and Acquisitions Negotiations
Whether a deal involves equity financing, mergers or acquisitions, negotiation skills and experience are key components. If you don’t have a skilled and experienced legal advisor who can help you negotiate, or negotiate on your behalf, you will most likely not do a great deal or may end up with no deal. So when it comes to obtaining a legal advisor when it comes to equity financing, mergers or acquisitions. The old Roman saying rings true: “Caveat Emptor”! (Let the buyer beware.)
