Episode description

Startup LAWnchpad is the podcast that educates entrepreneurs about forming, growing, and protecting a startup. Startup LAWnchpad is produced by the Entrepreneurial Law Clinic at Fordham University School of Law in New York City.

Episode Description: 

Lauren Hutwelker (Fordham Law ‘23) and Arman Borazjani (Fordham Law ‘23) interview Darren Bartlette, Associate, Manatt, Phelps & Phillips, LLP about exit strategies for entrepreneurs. They cover what the options for exit strategies are, timelines for their effective implementation, and the common pitfalls that entrepreneurs need to avoid.  

• [:34] Third year Fordham Law students Lauren Hutwelker and Arman Borazjani introduce themselves and their guest Darren Bartlette and offer an overview of today’s episode. 

• [1:52] As a startup lawyer, Darren helps entrepreneurs at every stage from formation and financing to exit. 

• [2:26] Defining exit strategy options for entrepreneurs and the various reasons founders may be looking at exiting. 

• [4:22] Legal and business considerations for owners when selecting an exit strategy. 

• [5:29] The role that lawyers can play in executing an exit plan. 

• [7:28] Steps to avoiding common legal pitfalls facing entrepreneurs when exiting a business. 

• [10:07] M & A deals have the potential of being delayed if the IP assignment agreement isn’t properly formalized. 

• [11:32] The importance of completing the due diligence process in its entirety. 

• [12:54] Timelines for formulating exit opportunities and when to include them in founder agreements.  

• [15:48] Common exit strategies during an economic downturn.

• [17:25] Advice for founders facing an involuntary exit and common trends during the recession. 

• [19:07] The ideal timing of a voluntary exit depends on a variety of factors. 

• [20:36] Considerations for founders who are interested in early exiting. 

• [23:08] Darren’s book recommendations for entrepreneurs.

• “Exits don’t always mean that a company is doing well.” - Darren Bartlette

• “Founders should consider how much involvement they want to have in the future of the company.” - Darren Bartlette

• “It’s very important for companies and entrepreneurs to stay organized for any exit event.” - Darren Bartlette

• “A $5,000 mistake today could turn into a $15 or $20,000 mistake tomorrow.” - Darren Bartlette

• “Founders should be thinking about exit opportunities early on.” - Darren Bartlette

• Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist by Brad Feld and Jason Mendleson

• Shortcut Your Startup: Speed Up Success with Unconventional Advice From the Trenches by Coutney and Carter Reum 

• Fordham’s Entrepreneurial Law Clinic

• Follow us on Twitter @FordhamELC

• Nasdaq Educational Foundation

• Fordham’s Entrepreneurial Law Advisory Council

Disclaimer:

The information contained in the Startup LAWnchpad podcast and any materials associated therewith (the “Podcast”) is for educational, informational, and entertainment purposes only. It does not constitute legal advice or tax advice with respect to any particular circumstance. The Podcast is not a complete overview or analysis of the topics presented and may contain information that varies in different jurisdictions and is subject to revision, interpretation, or nullification after the date of recording. The transmission of information to you does not create a lawyer-client relationship between you and any host, guest, or their respective employer, including but not limited to Fordham University School of Law and Lincoln Square Legal Services, Inc. None of these parties shall be liable for any loss that may arise from any reliance on the Podcast. You should not rely upon the Podcast or treat it as a substitute for legal advice. You should consult a lawyer familiar with your particular circumstances and licensed in your jurisdiction for legal advice.