Shareholder Representative Services Launches Blog About VC-Backed M&A Transactions
04.14.2009San Francisco, CA – April 14, 2009 – Shareholder Representative Services (SRS) today unveiled a new blog, “Post-Closing Briefs,” that provides information about what SRS has learned in its role representing stockholders after the close of VC-backed merger transactions. Blog posts include insights into such topics as merger agreement drafting tips, risks that arise that most deal professionals may not be aware of, and suggestions about how to mitigate those risks.
SRS has served as the professional shareholder representative following the acquisition of more than 30 venture-backed portfolio companies in deals valued at more than $4 billion. By expertly managing the escrow process and post-closing period, SRS has saved VCs millions of dollars in potential claims.
The new blog at www.shareholderrep.com/blog offers insights into the nuances and pitfalls of merger deals, including discussions of the following:
• What sellers can do to deter indemnification claims from being made
• The technical accounting issues that should be considered in negotiating deal terms
• The “tricks” or “games” that a buyer can play to tie up an escrow
“We see a large volume of VC-backed M&A of deals and learn a lot through that process,” said Paul Koenig, co-founder and managing director of SRS and a former M&A attorney. “The goal of our blog is to provide other deal professionals with a valuable resource based on our experiences with these transactions that will help them negotiate the best possible terms for themselves or their clients.”
In its role as a professional shareholder representative, SRS manages the post-closing escrow process on behalf of the former shareholders of venture-backed companies. This includes handling possible claims by the acquiring company related to working capital disputes, earnouts, or breaches of representations or warranties; communicating with escrow agents and other parties to the transaction; and resolving other matters that may arise.
About Shareholder Representative Services (SRS)
Shareholder Representative Services saves venture capitalists time and money during the escrow period following the sale or acquisition of one of their portfolio companies. SRS has more experience managing the post-closing escrow period than anyone else: since 2007, SRS has represented more than 200 venture capital firms and managed the escrow period in more than 30 venture-backed M&A deals valued at over $4 billion. Venture capitalists who have used SRS say that hiring SRS to manage the post-closing escrow period is the smart thing to do, because being the shareholder representative involves real responsibilities and risk, including the possibility of personal legal liability for individuals who take on this role. More information: www.shareholderrep.com
| The goal of our blog is to provide other deal professionals with a valuable resource based on our experiences with these transactions that will help them negotiate the best possible terms for themselves or their clients. | ||
| Paul Koenig Managing Director<br>Shareholder Representative Services | ||