Case Studies
Evolution of a Company: From Inception to Sale In One Year

Related People Adam J. Agron
Related Practice Business & Corporate Advisory, Corporate & Business, Mergers & Acquisitions, Private Equity
Client Mobile Phone Applications Company

Challenge

A tech-savvy entrepreneur had a plan to form a cutting edge mobile phone applications company but he needed expertise in numerous areas of the law to assist him. To accomplish this goal, the entrepreneur sought a nimble but experienced and well-connected law firm able to provide all types of counsel, including corporate, intellectual property, real estate, employee benefits, tax, regulatory, mergers & acquisitions and securities.

Solution

Brownstein Hyatt Farber Schreck assembled a diverse team of attorneys able to provide counsel to the entrepreneur throughout the rapidly advancing lifecycle of the company. The firm was instrumental in launching the company, handling everything from drawing up formation documents, capitalizing the company with friends and family investors, securing office space, hiring employees and consultants and developing employee benefit plans to creating an efficient tax structure and protecting the nascent company's all-important intellectual property.

Once the company was up and running, it's initial product achieved near immediate market acceptance. It became apparent that significant additional funding was needed to facilitate the company’s growth. Brownstein assisted the company in approaching venture capital firms with broad and deep experience in the telecommunications space. The company received $15 million of venture capital funding only months after inception and Brownstein handled all of the negotiation and documentation for the capital infusion.

Within less than one year, the company was approached by a division of a major telecommunications company about a possible sale. Brownstein's mergers & acquisition team managed all aspects of sale, which included a significant up-front cash and stock purchase price along with a key role for the founder running the venture under the major telecommunications company umbrella.