Sales Contracts Critical when Selling or Acquiring a Business in Chicago
In Silicon Valley, it's becoming increasingly common for large corporations to acquire smaller competitive businesses in order to shut them down and steal their engineers, The New York Times recently reported.
If your start-up is in a position to benefit from a larger competitor trying to purchase your company, Chicago Business Lawyers believe it is essential that agreements to retain the company's employees and executives be carefully handled. All areas of small business law in Illinois are important, but protecting a company and its employees is perhaps the most crucial. Without experienced attorneys handling the negotiations and paperwork, a potential windfall could be devastating.
Companies like Facebook, Google and Zynga are using their financial backing to buy start-ups at a rapid pace. The larger companies distribute stock to founders, employees and investors and then give the acquired employees a rich salary and more stock options.
Some believe the companies are paying too high a price, while others believe it does nothing but benefit software engineers who have stumbled upon a great idea. Top talent is thin and so these corporations are dangling perks and incentives, including big salaries, to lure them. Sometimes, the buyers keep the products going, but often, the newspaper reports, they dump the products and make the deals solely to get the talent.
This is often a win-win situation for young entrepreneurs and investors, who strike gold by getting large salaries and big bonuses. But it's important that these businesses take care of the employees who helped make the company successful enough to catch the eye of these large corporations.
Many companies find themselves involved in the area of mergers and acquisitions, which requires a team of attorneys experienced in this area of business law. It is critical that your business have lawyers striving to meet your company's long-term vision and plans.
Small businesses, without teams of attorneys on retainer like large companies, need a firm of experienced Chicago attorneys ready to represent and stand up to big business. We represent clients in many fields of business law, such as shareholder agreements, non-disclosure agreements or other types of contracts in order to protect what you've worked hard to create and develop.
Jeremy A. Gibson & Associates represents clients in merger and acquisitions in Chicago and elsewhere in Illinois. Call 877-452-4529 for a free consultation.