San Francisco Franchise Attorneys & Lawyers

What is Form D?

Form D is a filing with the Securities and Exchange Commission (SEC) that allows companies under a Regulation D exemption or Section 4(6) exemption to offer stock to finance their businesses without going through the IPO process and selling stock to the public.

Companies that sell securities typically have to register with the Securities and Exchange Commission (SEC) under the Securities Act of 1933. This is a long process and can make it complicated to follow and understand the law. Smaller companies seeking venture capital can instead file Form D - a process that is quicker, simpler and protects the company from potential legal problems.

Why Is Form D Important?

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What is Required to Value a Company?   

To value any company requires applying one of several processes and corresponding set of procedures that will help you to determine valuation.    

What are the Most Common Processes Used in the Valuation of Companies?   

To value a company, you must determine the most suitable process to use, based on the type of business and the business’s liquidity. There are three common processes: asset-based, market-based and income-based. Here's how each one works:

1.  Asset-Based

The asset-based process places dollar values on both the company’s assets and liabilities. The basic formula for this valuation process can be stated as:

Assets – Liabilities = Company Value

Valuation factors to consider with the asset-based process inc

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CrowdFunding: What Is It?

Crowdfunding involves a lot of people investing a small amount of money to start a project. This is typically seen over the internet, but can also be done in other ways. Asking strangers for money may seem awkward, but it doesn't have to be. There are a lot of excellent crowdfunding sites that people trust. By using one of those sites and having a great project, you have a higher chance of getting people to help you.

Equity crowdfunding has been a newer option available under the Jumpstart Our Jobs (JOBS) Act.  

What Are the Types of CrowdFunding?

There are

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Updated November 12, 2020:

What Is Tortious Interference?

Tortious interference occurs when a business tries to economically harm a competitor by interfering with a contract or relationship. Breach of contract is the most common cause of interference. However, it is not the only form.

Interference often leads to economic damage. For example, the interference could involve the sale of a business. It could also happen if a vendor offers a business unreasonably low prices, causing the buyer to breach a contract with another vendor. Interference must be intentional to result in a legal suit.

Basics of Interference

The defendant in one of these cases is the person who interfered with the contract. Interference can happen in many ways, including:

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Pre-Money Valuation: What Is It?

Pre-money valuation (PMV) is the initial value of a company before any type of investment. The capital a business receives after its pre-money valuation is called post-money valuation.

Why Is Pre-Money Evaluation Important?

• PMV determines the value of company shares.
• Through PMV, an investor can determine the value of a company's shares.
• Through PMV, anyone can calculate the total value of a company.
• Using PMV, the parties involved with an investment can determine how much of the company each party controls after the investment.

How Pre-Money Evaluation Works

Think of PMV as a simple calculation that investors use to weigh the value of becoming a shareholder. A company with a PMV of $10 million that has 1 million shares has value of $10 per share. W

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