Chicago Real Estate Attorneys & Lawyers

What is a Portfolio Company?

A portfolio company is a term used to describe a company in which investors own equity in a company or buy out a company. The goal of the investor is to increase the value of the portfolio company and earn a return on their initial investment.

The investment could be in the form of private equity in established companies or venture capital in companies just starting out. One portfolio company usually forms part of a group of companies in the investor's full portfolio.

Who Invests in Portfolio Companies?

Portfolio companies are used by venture capital firms, private equity firms, and other financial investment firms. Some firms build a portfolio of companies that specialize in a specific sector, such as science or engineering. Others have a diverse mix of portfolios.

Private Equity Firms: Private equity is a type of financ

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What is Capital Stock?

Capital stock is the common stock and preferred stock that a company is allowed to issue according to its corporate charter. Common and Preferred stock can be separated into different classes of stock with their own features. In accounting, capital stock is one part of the equity section on a balance sheet.' Only corporations can sell capital stock to investors.

Capital stock is not necessarily equal to the number of shares that are currently outstanding. It is the maximum number of shares that can ever be outstanding. If a company wants to change this number, they have to change it on their charter. This is

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Updated October 28, 2020:

What is a Right of First Refusal?

A right of first refusal, also called a ROFR, the first right of refusal, or a last look provision, gives a person or company the opportunity to start a business transaction before anyone else can. It could provide the first chance to buy stocks or real estate at the same price and terms as another offer. If the holder of the right of first refusal declines, the owner of the asset can sell it to whomever they want.

There's even a ROFR in many child custody agreements. It requires that one parent offer the other parent the chance to watch the kids before using a family member or outside child care.

A Right of First Offer: What is it?

A right of first offer or ROFO requires owners to

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Updated June 23, 2020:

A non-solicitation agreement says that if you work for a competitor, you won't solicit any clients, bring over any employees, or use any confidential information from your current job.

What Is a Non Solicitation Agreement?

A non-solicitation agreement is a common contract clause that says if you work for a competitor, you won't solicit any business clients, bring over any employees, or use any confidential information connected to your current job. In other words, you can't use your old company contacts to help your new company. In any business, two of the most important groups of people are the employees and the customers. Stealing customers takes something extremely valuable from a company.

For example, imagine you're a high-ranking salesperson for a company that sells copper wire. Because of your job, you've spoken with copper wire buyers all across the glob

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Updated October 26, 2020

What Is a Contract?

A contract is a legal agreement between two or more parties. A business contract includes the following:

• Names of all parties
• Contract beginning and end dates
• Payment amounts and schedule
• Steps to take when a party breaks the contract
• Signature with date

Business Contracts: What Are They?

Also known as a contractual business relationship or an agreement, a contract describes expectations for an interaction. It ensures all parties agree to the terms of their relationship.

A contract should include:

• Offer: One party makes the offer, and the other accepts it.
• Exchange: This includes money, goods, and services.

Why Are Contracts

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