USA
Canada
United States of America
Washington DC
Law and Practice Contributed by: George Casey, Heiko Schiwek, Elena Rubinov, Vinita Sithapathy, Kristina Trauger, Pierre-Emmanuel Perais, Clara Pang and Gregory Gewirtz Linklaters
Mexico
Contents 1. Market Trends p.321 1.1 Technology M&A Market p.321 1.2 Key Trends p.321 2. Establishing a New Company, Early-Stage Financing and Venture Capital Financing of a New Technology Company p.321 2.1 Establishing a New Company p.321 2.2 Type of Entity p.321 2.3 Early-Stage Financing p.321 2.4 Venture Capital p.322 2.5 Venture Capital Documentation p.322 2.6 Change of Corporate Form or Migration p.322 3. Initial Public Offering (IPO) as a Liquidity Even t p.322 3.1 IPO v Sale p.322 3.2 Choice of Listing p.323 3.3 Impact of the Choice of Listing on Future M&A Transactions p.323 4. Sale as a Liquidity Event (Sale of a Privately Held Venture Capital-Financed Company) p.323 4.1 Liquidity Event: Sale Process p.323 4.2 Liquidity Event: Transaction Structure p.323 4.3 Liquidity Event: Form of Consideration p.323 4.4 Liquidity Event: Certain Transaction Terms p.323 5. Spin-Offs p.324 5.1 Trends: Spin-Offs p.324 5.2 Tax Consequences p.324 5.3 Spin-Off Followed by a Business Combination p.324 5.4 Timing and Tax Authority Ruling p.325 6. Acquisitions of Public (Exchange-Listed) Technology Companies p.325 6.1 Stakebuilding p.325 6.2 Mandatory Offer p.326 6.3 Transaction Structures p.326 6.4 Consideration and Minimum Price p.326 6.5 Common Conditions for a Takeover Offer/Tender Offer p.326
6.6 Deal Documentation p.327 6.7 Minimum Acceptance Conditions p.327 6.8 Squeeze-Out Mechanisms p.327 6.9 Requirement to Have Certain Funds/Financing to Launch a Takeover Offer p.327 6.10 Types of Deal Protection Measures p.327 6.11 Additional Governance Rights p.328 6.12 Irrevocable Commitments p.328 6.13 Securities Regulator’s or Stock Exchange Process p.328 6.14 Timing of the Takeover Offer p.328 7. Overview of Regulatory Requirements p.328 7.1 Regulations Applicable to a Technology Company p.328 7.2 Primary Securities Market Regulators p.329 7.3 Restrictions on Foreign Investments p.329 7.4 National Security Review/Export Control p.329 7.5 Antitrust Regulations p.330 7.6 Labour Law Regulations p.331 7.7 Currency Control/Central Bank Approval p.332 8. Recent Legal Developments p.332 8.1 Significant Court Decisions or Legal Developments p.332 9. Due Diligence/Data Privacy p.333 9.1 Due Diligence Process p.333 9.2 Technology Company Due Diligence p.333
9.3 Data Privacy p.334 10. Disclosure p.334 10.1 Making a Bid Public p.334 10.2 Prospectus Requirements p.334 10.3 Producing Financial Statements p.334 10.4 Disclosure of Transaction Documents p.335 11. Duties of Directors p.335 11.1 Principal Directors’ Duties p.335 11.2 Special or Ad Hoc Committees p.335 11.3 Board’s Role p.335 11.4 Independent Outside Advice p.336
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