Putting Deals through a Microscope | Traversing Transactions attempts at dissecting a deal by analyzing various aspects and nuances of an M&A Transaction, traversing through a complex mesh of Commercial, Regulatory, and Tax ("CRT") imperatives!
Putting Deals through a Microscope | Traversing Transactions attempts at dissecting a deal by analyzing various aspects and nuances of an M&A Transaction, traversing through a complex mesh of Commercial, Regulatory, and Tax ("CRT") imperatives!
Putting Deals through a Microscope | Traversing Transactions attempts at dissecting a deal by analyzing various aspects and nuances of an M&A Transaction, traversing through a complex mesh of Commercial, Regulatory, and Tax ("CRT") imperatives!
In the founder phase, ownership and control sit in the same hands, and the two are easily treated as one. Ownership is economic entitlement, through dividends, capital appreciation and, in some configurations, votes. Control is the capacity to determine outcomes, through strategy, leadership selection, information and capital deployment.
As the enterprise grows, economic participation widens across family members and investors, but decision authority cannot widen at the same pace. Control comes to operate through the board, leadership roles, signing authority, information and holding structures, and a family branch may hold substantial equity with limited influence. Where this is not articulated, succession planning becomes unstable.
Part 2 of the series drawn from my book, From Founder to Framework: ownership is not control, and why each must be designed separately.