Type A Reorganization
What is a Type A Reorganization? Type A reorganization is a “statutory merger or consolidation.” These are mergers or consolidations effected pursuant to state corporate law. A merger is a union of two or more corporations. One corporation retains its existence and absorbs the others. On the other hand, a consolidation occurs when a new corporation...
Tax-Free Reorganization
What is a Tax-Free Reorganization? A corporation may undergo restructuring or reorganization for various strategic reasons, such as increasing operational efficiency or reducing costs. The reorganization may be conducted to increase profits. A tax-free reorganization is often implemented to identify efficiencies within the law that allow for reduced tax liability. Such types of reorganizations can...
Equity Carve Out
What is Equity Carve-Out? Through the process of an Equity Carve-Out, a company tactically separates a subsidiary from its parent as a standalone company. The new organization is complete with its own board of directors and financial statements. The parent company usually retains its controlling interest in the new company. It also offers strategic support...
Term Sheet Template
What is a Term Sheet? A term sheet outlines the basic terms and conditions of an investment opportunity and is a non-binding agreement that serves as a starting point for more detailed agreements – like a commitment letter, definitive agreement (share purchase agreement), or subscription agreement. Term sheets are often produced by investment bankers on...
Greensheet
What is a Greensheet? A Greensheet (or Green Sheet) is a summary of the key attributes of the issuer of an offered security used by the sales force when they solicit expressions of interest from prospective institutional investors and brokers. It is an internal marketing document and cannot be shared outside of the bank. Greensheets...
