The Right of First Offer (ROFO) is a contractual obligation by the owner of an asset to negotiate the sale of the asset with the rights holder before offering sale of the asset to any third parties. In the context […]
A Registered Agent is the official “contact person” for a business. A business must officially designate a registered agent to receive and accept any lawsuits, notices, or other legal documents on behalf of the entity. Texas requires every entity to […]
A Rollup is an acquisition or merger of a smaller company by a larger company in the same market. The larger companies often purchase the smaller companies to optimize their production and distribution channels.
Revenue is money that is brought into a company by its business activities (typically from sales).
A Restricted Stock Purchase Agreement (RSPA) is an agreement issuing restricted stock. RSPAs are typically granted to founders to prevent the founder from leaving the company prematurely and taking a lot of the ownership with her. The RSPA establishes when […]
Restricted Stock is ownership shares of a corporation that are unregistered. Because these shares are unregistered, the stock is non-transferable and can only be transferred in compliance with certain SEC regulations. Restricted stock is most commonly granted to executives, directors, […]
Reserved Shares are company shares that are reserved for some internal purpose and will not be issued to shareholders. Some shares are required to be reserved. For example, if a company issues preferred stock, the company must reserve enough shares […]
Representations and Warranties Insurance is commercial insurance obtained by a buyer and/or seller during an acquisition transaction to cover certain indemnification obligations of a seller post transaction. Like most other types of insurance, Representations and Warranties Insurance has a premium […]
Representations and Warranties are certifications of certain important facts by a party to an agreement to the other party to the agreement.
A Related Party means an individual or business that is closely “related” to a specified person or entity. Related Persons are usually relevant for securities purposes and contracts between the related person and a company being acquired.