Pascal's View

DECEMBER 17, 2012

It is critical to know the state of the art in merger terms leading to an acquisition and in post-merger covenants, particularly with respect to the release of cash consideration held in escrow or as a holdback by the buyer.

Acquisition 38

Acquisition Merger Covenant Liquidity Event 38

Berkonomics

DECEMBER 21, 2017

But this time, we concentrate upon governance changes. The combination of restrictive covenants in the investor documents and the new dynamic of board members with an agenda make for a change in the culture of the corporation, certainly one for the CEO. Let’s talk about the reality of taking money from professional investors.

Covenant 97

Covenant Cost Angel Groups Angel Investor 97

This is going to be BIG.

AUGUST 28, 2011

Remember the covenant that the music industry used to have with the consumer? From now on, we’re going to be connecting right to direct sources ourselves—to government newsfeeds and to citizens broadcasting their own local experiences right from the scene—right to our TVs. Forget new business models for journalism.

Libya 150

Libya Syria Covenant New Jersey 150

OnlyOnce

APRIL 23, 2024

Normally, I’m in favor of small government and fewer regulations, but this is one where I think the government has a legitimate interest in setting up guardrails to a free market. Some restrictive covenants for a limited period of time for former employees are totally fair.

Non-Compete 71

Non-Compete Covenant California Government 71

Berkonomics

FEBRUARY 8, 2024

But this time, we concentrate upon governance changes. The combination of restrictive covenants in the investor documents and the new dynamic of board members with an agenda make for a change in the culture of the corporation, certainly one for the CEO. Let’s talk about the reality of taking money from professional investors.

Cost 62

Cost Covenant Angel Groups Angel Investor 62

Berkonomics

JULY 16, 2020

Read the loan covenants carefully. Then there is the loan audit fee, often more than $4,000 a year, to pay for the lender’s auditor to make sure the collateral and company are compliant with the covenants of the loan. A five-day float increases the actual interest rate by up to an additional 2% over the stated rate.

Covenant 62

Covenant Dilution Warrant Intellectual Property 62

YoungUpstarts

JUNE 19, 2018

They (not government) have to lead the way. Pensacola used a Covenant for the Community to guarantee that contractors would use local minorities in the revitalization of downtown. They’re partnering with government the right way. . Government is a wonderful partner and wants the same outcomes citizens do.

America 100

America Community Covenant Metrics 100

Berkonomics

AUGUST 21, 2013

Loan covenants are always required that clearly state how much net equity, the minimum current ratio, and other minimum financial requirements must be maintained to be compliant, and state the penalties for non-compliance – which are always severe, often threatening to call or cancel the loan in its entirety.

Covenant 61

Covenant Warrant Dilution Intellectual Property 61

Gust

OCTOBER 26, 2011

I have to admit my West Coast bias here, having learned the ropes at a large Silicon Valley firm ; it makes little sense to me to have investor’s counsel drafting documents that are woven into the fabric of a company’s governance and capital structure, with which the company will likely be living for years after the investment is made.

Finance 79

Finance Term Sheet Covenant Accredited Investor 79