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Full-Text Articles in Law
Carrots And Sticks: How Vcs Induce Entrepreneurial Teams To Sell Startups, Brian J. Broughman, Jesse M. Fried
Carrots And Sticks: How Vcs Induce Entrepreneurial Teams To Sell Startups, Brian J. Broughman, Jesse M. Fried
Articles by Maurer Faculty
Venture capitalists (VCs) usually exit their investments in a startup via a trade sale. But the entrepreneurial team – the startup’s founder, other executives, and common shareholders – may resist a trade sale. Such resistance is likely to be particularly intense when the sale price is low relative to VCs’ liquidation preferences. Using a hand-collected dataset of Silicon Valley firms, we investigate how VCs overcome such resistance. We find, in our sample, that VCs give bribes (carrots) to the entrepreneurial team in 45% of trade sales; in these sales, carrots total an average of 9% of deal value. The overt …
Empirical Research And The Shareholder Derivative Suit: Toward A Better-Informed Debate, Bryant G. Garth, Ilene H. Nagel, Sheldon J. Plager
Empirical Research And The Shareholder Derivative Suit: Toward A Better-Informed Debate, Bryant G. Garth, Ilene H. Nagel, Sheldon J. Plager
Articles by Maurer Faculty
No abstract provided.
Fair Dealing Comes Of Age In The Regulation Of Going Private Transactions, Carole Silver
Fair Dealing Comes Of Age In The Regulation Of Going Private Transactions, Carole Silver
Articles by Maurer Faculty
No abstract provided.