Lilium’s Post

It is NOT good news. And here is why: (I were thinking to answer with repost of Lilium post OR to this post https://lnkd.in/eFUWZS4t so I recommend you to read through comments to both posts) Firstly, the sequence, timing, and circumstances of the announcements. First, you declare bankruptcy and lay off 1,000 people, and then, during Christmas (when no one is working or negotiating), you suddenly find a company ready to buy your assets. Couldn’t you have waited and avoided causing unnecessary distress to the community and employees? Secondly, what is this firm that’s supposedly acquiring the assets? There’s no information about it. It was created just a month ago, and it’s unclear who is managing it. Thirdly, negotiations for such deals don’t take a month or two. Considering the first two points, it raises the obvious question: is this a genuine buyer? And what came first, the agreement or the firm? Fourthly, let’s assume you found some buyer. Who is this buyer willing to purchase the assets of a company that the government refused to fund, that has been called fraudulent by several publications, and that failed to produce a product in nine years? Fifthly, what about the previous investors? People invested $1.5 billion, then the stock value plummeted, and now someone is buying them out for pennies? And considering points 2 and 3 (the nature of this buyer firm created a month ago), isn’t this another fraudulent scheme? Sixthly, there’s also the question in the comments about “what’s happening with the employees.” At least 200 employees didn’t receive invitations to the meeting scheduled for 10:00 AM on December 24 (again, who thought this was a good time for a meeting?). Furthermore, the type of deal is unclear, and it’s possible that employees won’t be rehired. Seventhly, the deal involves “reorganization” and “restructuring,” which is always a euphemism for “cost-cutting.” This leaves us guessing about the conditions and salaries that will be offered. On that note, Glassdoor shows salaries above the industry average, which again raises the question of the company’s financial efficiency, given the results of nine years of operations.

“What Legal Aspects Should I Consider When Investing in Venture Capital?” A frequent question from investors is: “What legal risks should I be aware of when investing in venture capital?” Answer: Investing in venture capital (VC) offers high potential returns, but it’s crucial to understand the legal landscape. Here are the key legal factors to consider: ⚖️ Regulatory Framework: Venture capital investments are subject to regulations by bodies like SEBI in India or the SEC in the U.S. These regulations ensure that the investment is compliant with the law. Always ensure that the VC fund or startup you’re investing in adheres to these guidelines. 📜 Investment Agreement: The investment agreement is a critical document in VC investments. It outlines the terms and conditions of your investment, including ownership percentage, exit strategies, and rights as an investor. Reviewing this agreement carefully helps you understand your position and protect your interests. 💼 Due Diligence: Before committing, conduct thorough due diligence on the startup. Investigate its financials, business model, intellectual property, and the team behind it. Legal due diligence will help identify risks and potential legal issues that could impact your investment. 🔐 Exit Strategy: One of the key aspects of venture capital is the exit strategy, such as an IPO or acquisition. Ensure that the terms for exiting the investment are clearly defined in the agreement, as they will dictate how you can monetize your investment and the timeline for doing so. 💡 Tax Implications: Venture capital investments are often subject to capital gains tax upon a successful exit. Be sure to understand the tax treatment of your earnings, as it can significantly impact the profitability of your investment. Key Takeaways: • Ensure regulatory compliance ⚖️ • Review the investment agreement 📜 • Conduct thorough due diligence 💼 • Clarify the exit strategy 🔐 • Understand tax implications 💸 Considering a venture capital investment? Let our legal experts guide you through the process and help safeguard your investment. 📞 Contact: +91-9051112233 💻 Website: www.lexcliq.com #VentureCapital #LegalRisks #InvestmentAgreement #DueDiligence #ExitStrategy #CapitalGainsTax #InvestorProtection #LexCliq #InvestmentGuidance

PE investors must relinquish special rights in IPO-bound companies before listing under new guidelines 📉💼 Read more⤵️ #PEInvestors #IPO #Listing #specialrights

Renzenbrink & Partner advises IK Partners on the acquisition of Driescher Renzenbrink & Partner has advised IK X Fund (MidCap) on the acquisition of family-owned Driescher Moosburg Eisleben a leading German manufacturer of medium and low-voltage switchgear. With over 85 years of expertise, Driescher plays a vital role in modernizing energy networks. Backed by IK, the company plans to expand its core business, drive innovation, and grow internationally, including its after-sales services. The transaction includes reinvestments by the family shareholders and co-owners of the Czech subsidiary DRIBO, spol. s r. o., strengthening the group’s growth strategy. Renzenbrink & Partner’s advisory team included Ulf Renzenbrink, Dennis Schlottmann, Alexander Haunschild, Marc Priesmeyer, Dr. Andreas Sandberger, and Konstantin Klein (Corporate/M&A), as well as Marc Kotyrba, Dr. Toufic Schilling, and Marie Eikmeier (Tax). https://lnkd.in/dUh7h4bN #renzenbrinkpartner #corporate #privateequity #familybusiness

🔍 Do you want to learn more about the Corporate Purpose and Corporate Interest of a Luxembourg company in restructuring and insolvency situations? Then check out our latest article published in the Summer edition of Eurofenix (INSOL Europe) where Sofia Polykandrioti and Michael Scott, members of our Restructuring Team in Luxembourg, delve into the critical concepts of corporate purpose and corporate interest in Luxembourg with a particular focus on restructuring and insolvency situations. To read the article and learn more, please click here 👉 https://lawand.tax/3WcSGmQ #lawandtax #luxembourg #restructruing #insolvency #corporate

I've been seeing more and more "GP stake" or "Seed" deals recently. 💸 A GP stake transaction is where an emerging GP takes an investment in the GP/ManCo entity itself. For example, a third-party investor might give the GP $100k in exchange for 10% of the carried interest. 🫱🏽🫲🏼 That investor often also gets the right to invest as an LP in the fund on a carry-free, fee-free basis. There are many ways to structure these deals. In some cases, the investor might get the right to a stream of management fees. In some cases, the rights might extend to future funds (Funds 2, Fund 3, Funds 4+). 🤑 The seed investment helps the GP cover startup costs before the initial closing of their fund. ⚠️ Note: It's important to have tax counsel involved in these transactions. You don't want the fund manager to accidentally have a taxable event when selling a stake in the GP/ManCo.

Co Down financial advice business expands with Northern Ireland acquisition

Ichigo Office is acquiring 6 office assets with earnings upside in central Tokyo & central Fukuoka (total acquisition price: JPY 15.4B) using proceeds from recent asset sales, a new share issuance via third-party allotment (allottee: Ichigo Trust), loans, and cash-on-hand. Ichigo Office is also revising up its Oct 2024 fiscal period earnings forecast to reflect the impact of the asset acquisitions. #office #REIT #acquisitions #earnings #growth Issuance of New Shares via Third-Party Allotment: https://lnkd.in/gzb5BJNF Acquisition of Six Office Assets: https://lnkd.in/gcPZwJtd Upward Earnings Forecast Revision for the October 2024 Fiscal Period: https://lnkd.in/gxbW5Z3T Supplementary Material: https://lnkd.in/gzpR7-8u

White & Case LLP has advised the unitranche and revolving lenders on Thoma Bravo’s acquisition of a majority stake in USU Product Business. Read more here. https://ow.ly/J3h750Ulzjk #whitecase

Gallant Capital to Buy Navient’s Government Services Business https://ift.tt/bfgqIH6 Private equity firm Gallant Capital Partners has agreed to acquire Navient’s government services business, or NGS, that provides technology-enabled outsourced business processing support for U.S. federal, state and local government agency customers. Gallant said Sunday it expects the transaction to conclude in the first quarter of 2025. “This acquisition represents Gallant’s second corporate carveout in via GovCon Wire https://ift.tt/uAPskLh January 06, 2025 at 04:31PM