A firm for these economic times, and your economic opportunity.™

Start-Up Forget-Me-Nots Business & Legal Issues

Monday, August 30th, 2010

Start-Up Forget-Me-Nots “Start-Up Forget-Me-Nots” highlights business and legal issues that nearly all early-stage companies face. First presented at The University of Texas Pan American Technology Entrepreneurship Boot Camp in March 2010, it’s not a top 10 list, but 13 issues ranging from misconceptions about paying finders’ fees to personal director and office liability for failure to pay FICA. The presentation is a guide to the start-up company entrepreneur concerning how to do the cost-benefit analysis in order to preserve cash while limiting enterprise liability.

For more information, contact Walter Bissex of Bissex & Watson, P.C.

Bissex & Watson Client Testimonials Coming Soon

Monday, August 23rd, 2010

Coming soon…

Commercialization Opportunities

Wednesday, August 18th, 2010

Commercialization Opportunities“Commercialization Opportunities” is a June 2010 presentation highlighting the opportunities for a proof-of-concept fund in connection with Texas public and private research institutions. Start-ups spun out from universities are always high-risk investments, especially at a time when loans are difficult to obtain and the IPO market is all but closed. There are bargains to be had, however, especially for a patient investor. Most early-stage investments are made by venture capital funds, which virtually always need a liquidity event within ten years. When the IPO market is closed and there are few loans for buy-outs, the venture firm moves to later-stage investments, leaving excellent opportunities to be had for relative bargains in the start-up market by angel investors and others who have more than a 10-year horizon.

For more information, contact Walter Bissex of Bissex & Watson, P.C.

Mergers & Acquisitions Face New Tax Headwinds

Wednesday, August 18th, 2010

Business owners have faced incredible adversity over the last several years. For those entering the final stages of ownership before selling, the current economic environment can seem like an insurmountable obstacle. The expected expiration of the “Bush Administration” tax cuts could be another one. On January 1, 2011, the long term capital gains tax rate will increase from 15% to 20%, or explained another way, the long term capital gains tax rate will increase by 33.33% on January 1, 2011. Realization of this expense increase for sellers has caused a boon in M&A activity even in the first half of 2010. Though tax planning is only one piece of the M&A puzzle, we expect more in the latter half of the year as well. For sellers, if you haven’t begun the process of building your team of professionals to beat the tax deadline, now is the time. For buyers, if you can find a strategic acquisition late in the year, you may have additional leverage as the year closes out.

For more information, contact Mike Watson of Bissex & Watson, P.C.

When Negotiating a Workout, Understand Your Leverage

Wednesday, August 18th, 2010

Many companies are facing difficulty with declining revenue which puts a strain on the company’s liquidity from operations. Unfortunately, with declining revenues, many lenders are refusing to renew and calling due lines of credit, causing a second wave of liquidity evaporation. If the line of credit is secured, the stakes can be quite high. If the line is unsecured, the bank may try to play ball even harder. Negotiating a workout in the current economic environment can be tricky and information is important to understanding your leverage. Many banks today are under heavy pressure to shore up their balance sheets and if your loan is called due, it may be part of a larger effort to stabilize the bank. In some cases, the bank may be under federal orders to take such action. In 2010 alone, the FDIC has been issuing dozens upon dozens of “cease and desist” orders to troubled banks every month. These orders usually require the bank to make substantial changes to its operations and lending practices. If your bank is under such an order, you need to know it before you begin negotiating.

For more information, contact Mike Watson of Bissex & Watson, P.C.