Yesterday, our firm hold a seminar concerning legal aspects and recent trends of exit in venture capital deals. Norland Legal experts again shared their experience on relevant issues of the topic touched with a professional audience.
Alla Abarysheva, Head of Venture Investment and IT Technologies Practice, spoke of the proper ways to spell out various exit options in investment transaction documents, drew the participants’ attention to the peculiarities of English and Russian law when determining key exit conditions for the founder and investor, as well as due diligence risks for the seller and specific issues of settlement in transactions. Case in point during the discussion of these issues was the latest key transactions in the Russian market. Examples of foreign companies were considered within the framework of the possibility of exit through IPO.
A special place in the discussion of exit from venture capital investments took the issues of liquidation preferences, adjustment of the purchase price, deferred payments, and settlements with buyers’ shares. Investment banker Andrei Ponomarev (CEO Enter Capital, San Francisco) shared his opinion on these issues with the participants. Andrei spoke of the standards recognized in the venture industry of the Silicon Valley for determining and adjusting the company’s value in exit transactions, as well as calculations when acquiring start-ups by strategic buyers.
A lively discussion of the topics touched was moderated by Norland Legal Managing Partner Vladislav Lurie and continued throughout the event thanks to the active participation of our guests, who asked interesting questions and shared their own experience in this field.
We thank all the participants for the vigorous and substantial discussion and are waiting for everyone to join us at upcoming Norland Legal events!
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