How Do We Get Rid Of Junior?

More than three quarters of all businesses in the US are family run. (The proportion is even higher elsewhere.) Family ownership means that family relationships, for good or for bad, often trump (or at least complicate) whatever the corporate documents say should be done about distribution of profits; hiring, firing, and promotion of managers; purchase…

Private Equity Portfolio Company CEO Pay

A recent Stanford study of P/e (private equity) owned company CEO compensation across 144 sample firms  found the following: “To summarize the key results in this section, we find that, relative to public corporations, on average, PE-owned firms: (i) provide the CEO with 2.3 percentage points more equity (that is, nearly twice as much equity as…

What advantages and disadvantages are there to Illinois S corporations and LLCs with an S Corp Election?

Both S corporations and limited liability companies (LLC’s)  are generally similarly treated in Illinois for liability and tax purposes, particularly if an S corporation election is in effect for the LLC. Internal organization statutes are different. What is similar is that there is liability limitation to investment in either type of entity, similar veil piercing doctrines, an…

New Powerpoint On Private Offerings

I just uploaded a Powerpoint presentation on current legislation which would exempt merger and acquisitions professionals from broker-dealer requirements, which describes the types and amounts of money that can be raised in private offerings, and that shows what difference the JOBS Act regulations made in the private offerings process. See http://www.slideshare.net/wpriceiit/private-offerings-and-broker-dealer-registration-exemptions

Self-Dealing Is Easier In Some States

Where your corporation is organized can make a big difference in what self-dealing (sometimes litigated as “misappropriation of corporate opportunities”) is allowed. The New York Times pointed out the advantages of Nevada incorporation over Delaware for the major owner of Dish Network’s possible purchase of LightSquared, Inc., a broadband wireless company. See http://nyti.ms/1bfXsQe. The story…