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Devil in the Details – Must Read Fine Print

  • A Janover client seemed stuck for a $250,000 payment despite a deal falling through
  • Careful scrutiny by Janover unearths the solution

Janover often assists clients with the purchase and sale of their businesses. Recently, we provided services to an individual looking to sell his business. But there was a potentially costly agreement that went along with the sales process.

The client’s company had entered into an investment banking agreement whereby, in the event a buyer was introduced that would pay in excess of $50M for the company, the company would in turn be obligated to pay the investment banker $250,000 – regardless of whether the company accepted the purchase price or not. When a purchase deal was negotiated, but then, ultimately, the company decided not to consummate the transaction –the investment banker attempted to collect the $250,000.

Janover had the client’s interest foremost, and dug into the matter. Janover noted that the while the company valuation was indeed in excess of $50M, the buyer was not purchasing the entire company and, accordingly, the actual transaction was going to be less than $50M. The Company’s attorneys did not realize this point – nor did the investment banker. Thus, only through Janover’s attention to detail did the company avoid paying the $250,000 fee. Results such as this are the reason Janover’s clients view their associations with Janover as “relationships beyond calculation” – going the extra step, knowing their client’s needs intimately, and keeping their best interests a primary focus.

To learn more about Janover and the services they can provide, contact Janover at info@Janoverllc.com

For additional Janover case studies, go to: blog.janoverllc.com

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