Although it certainly isn’t always easy to build a highly successful start-up company, the benefits of doing so are often impressive. If you pay attention to business news headlines in Fort Lauderdale and the rest of Florida, you probably won’t be surprised to read about another notable buyout. However, when it comes to business formation and acquisitions there are a number of legal issues that business owners should pay attention to, such as documentation, initial development and human resources matters.
After a San Francisco mobile payment provider had an initial public offering last year and raised $101.2 million to develop services and continue expanding, they recently acquired a Miami start-up for roughly $15 million. A statement that was released by the California company highlights their desire to develop applications and provide bill payment solutions for people across the globe.
The former CEO of the acquired start-up will now serve as a vice president for the payment provider. The Miami start-up had only been operating for two years when it was acquired and employed over 30 people.
Buying a start-up can be a great way for companies to grow. With cutting edge ideas and innovative products and services, smart business owners take advantage of every opportunity they have to take their company to the next level. At the same time, some people may not be able to devote enough time and energy towards approaching the legal considerations properly. Furthermore, the legal aspects of these deals can be stressful and even confusing. Anyone in this position could benefit from talking to a knowledgeable attorney.
Source: South Florida Business Journal, “Miami-based startup company acquired for $15M,” Paul Brinkmann, Feb. 6, 2014
