Haircut Bait: Issues Leading to Price Adjustments, Holdbacks and Delays
February 15, 2006
- Fraud.
- Uncertainty of Revenue Stream.
- Supermajority or other Consent Rights Giving One Set of Shareholders, Creditors, Vendors or Other Parties Undue Leverage.
- Failure to Secure Key Intellectual Property Rights, Including Failure to Obtain Assignment of Invention Agreement from Every Employee with Plausible Claim.
- Vague or Undocumented Option or Other Equity Claims (Who Owns the Company?).
- Poorly Implemented Option Plans or Deficient Equity Issuances (Who has Rescission Claims?).
- Pending Litigation, Claims or Unfunded Obligations (Shareholder, Environmental, Service, Other).
- Departure or Threatened Departure of Key Employees.
- Poor Internal Systems and Controls.
- Questionable Title to Critical Assets.