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Deal Structuring

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The philosophy behind creating a marketable deal structure, also known as a “transaction” structure, primarily concerns the priority afforded investors’ interests with respect to the return of principal and profit.

            To arrive at a marketable deal structure, the very first question I generally ask a new client is akin to asking a child, “What do you want to be when you grow up?” This is because the wrong course of action now will result in the wrong outcome later. Backing up and making changes to your organizational structure, mode of operation, and five-year capitalization plan is not only expensive, but most often it is cost prohibitive to change later on. I ask the client, “What do you want your life to be like in seven to ten years from now?” Do you want to own 100% of a $5,000,000 company or 50% of a $100,000,000 company, or something in between?

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