One of the more important tax decisions founders of early-stage companies will face is whether or not to make an election under Section 83(b) of the Internal Revenue Code for stock awards or other acquisitions of shares subject to vesting. By making this decision promptly upon acquiring the shares, founders can avoid missing the 83(b) filing deadline and protect themselves from significant tax consequences down the line.…
Tag Archives: Kevin Criddle
So Your Fund Wants to Invest in Canada, Eh?
Despite a recent cooling in the overall investment climate, the number of active U.S. venture investors in Canada has more than doubled over the past five years. This migration north coincides with a climb in overall venture investment activity in Canada, increasingly challenging pricing on U.S.-based deals and a lower Canadian dollar, which depreciated extensively over the same period.…
Assigning Contracts in the Context of M&A Transactions
CONTRIBUTED BY
 Kevin Criddle kevin.criddle@dlapiper.com
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 Anthony Kappus anthony.kappus@dlapiper.com |
One of the key considerations in structuring merger and acquisition (M&A) transactions is determining which contracts of the target company, if any, will remain in effect for the acquiror following closing. This post will briefly outline: (1) the general rules of contract assignment; (2) the effect of anti-assignment clauses and other exceptions to the general rule of assignability; and (3) the effect of four common M&A structures on contract assignment.…
Section 83(b) Election, A Founder’s Best Friend
CONTRIBUTED BY
Kevin Criddle
kevin.criddle@dlapiper.com
Successful founders that fail to affirmatively make a Section 83(b) election may face staggering tax consequences years down the road.
The Internal Revenue Code (the “Code”) generally requires founders (or employees) that are granted restricted stock for services to report income as the stock vests. …
