Successful business owners and investors are smart when it comes to raising capital. But how they do it can be just as important as they fact that they get it done.
It’s imperative for corporations to have a corporate finance lawyer on board to help a growing firm sync all of its finances. This ensures not only that the company is paying the right taxes and getting as many tax rebates as possible, it also makes certain that any capital-raising ventures are legal and in line with local, state and federal laws. It may also help to insulate the firm and/or investors from certain liabilities if the venture is not successful.
In the case of FDIC v. Arciero, decided Dec. 20, 2013 by the U.S. Court of Appeals for the Tenth Circuit, corporate borrowers lost big because the promises of a failed bank’s former CEO were not properly memorialized in the bank’s records. The oversight was a major one, and it was also preventable.