Chicago Real Estate Attorneys & Lawyers

Updated July 8, 2020:

What is a Special Purpose Vehicle?

A special purpose vehicle (SPV) is a subsidiary of a company which is protected from the parent company's financial risk. It is a legal entity created for a limited business acquisition or transaction, or it can be used as a funding structure. It is sometimes called a special purpose entity (SPE).

An SPV has assets, liabilities, and a legal status outside of the obligations of the parent company. The primary purpose of an SPV is to carry out a specific business activity outside of the parent company, therein protecting the parent company from risks such as bankruptcy and insolvency issues.

Why is a Special Purpose Vehicle Important?

SPVs are formed as limited partnerships, trusts,

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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 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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Updated Ocotber 16,2020: 

What is Legal Due Diligence

Legal due diligence is an investigation into a business by re viewing documents and interviewing employees. A legal due diligence investigation is completed when a business or investor is interested in buying a business or investing in that business.

A legal due diligence investigation is seeking information about the business to make sure that the investment or purchase is beneficial. The investigation seeks to reveal all important facts and potential liabilities. Once the facts are collected and analyzed, an informed decision can be made.

There are subcategories of legal due diligence. These subcategories seek more specific pieces of information.

• Intellectual property due diligence

• Business due dili

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What Is Startup Valuation?

Startup valuation refers to the determination of a startup's worth, considering the market dynamics within its industry and sector.

These factors include the balance (or imbalance) between demand and supply of money, the size of recent events, the willingness of investors to pay premiums to invest in the company and the level of need the company has for money.

What Is a Startup?

A startup company is a new business which is potentially fast growing and aims to fill a hole in the marketplace by developing and offering a new and unique product, process or service but is still overcoming problems.

Startup companies need to receive various types of funding in order to rapidly develop a business from their initial business model that they can grow and build up.

Difference Between Startup Valuation and Mature Business Valuation

Startup businesses will usuall

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