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Los Angeles Corporate & Securities Law Blog

How is business bankruptcy different from personal?

When individuals are struggling with finances, one of the options they have to protect themselves against creditors is filing for personal bankruptcy. But what happens when a Los Angeles company is facing cash flow problems and can no longer generate a profit? They may also be able to avail the protection offered by bankruptcy, but in a different way.

Similar to personal bankruptcy, when a commercial bankruptcy petition is filed all creditors must cease making financial demands and follow the automatic stay granted to the business. The business must submit financial statements outlining their assets, liabilities, income, and expenses. Also, the statement must include a description of the company's financial affairs and contracts. Under which chapter business owners file for bankruptcy depends on the type of a business.

Los Angeles-based commercial real estate company acquired

The acquisition process can be an exciting growth opportunity for any company which is why it is important to possess a careful knowledge and understanding of the process. National commercial real estate services company Jones Lang Lasalle (JLL) is expanding its retail business. The company recently acquired Los Angeles-area Wilson Retail Group which is one of the top independent retail brokerages based in Los Angeles. Wilson Retail Group is also a capital markets firm and JLL views the acquisition as a good fit.

The acquired company offers landlord and tenant representation; investment sales' excess property disposition; and consulting services. Its portfolio includes 9 million square feet of retail space in 75 shopping centers throughout the region. The 16- person team that has built the retail leasing agency in the region will go to JLL with the acquisition.

Importance of a strategic plan for business formation

As discussed previously on the Los Angeles Corporate and Securities Law Blog, both a strategic plan and a business plan are important documents to formulate when beginning a business and, though both are similar to one another, their slight differences make it important to consider drafting both. A strategic plan lays out the steps needed to achieve the business or company's future goals and is usually updated annually to reflect priorities and objectives for the upcoming year. In addition to this, strategic plans also outline where a company hopes to be in specific time periods, such as five years later or 10 years on.

For a strategic plan to be useful, it must be realistic. The numbers at the base should be realistic and the expectations should be based in reality. For example, even as a company is set to expand its business and expects to make a lot of profit, they must take into account outside risk factors such as competition from other businesses and even political forces outside of their control.

What is a business plan and how does it help?

When Los Angeles residents decide to open their own business, they probably have a vision of what they are aiming to do and how to go about achieving those goals. Though their creativity allows them to hold all this information in their head, they may benefit from getting it all out on paper and drafting both a business plan and a strategic plan.

Though both plans allow the developer to recognize and outline the costs associated with running the business, the business plan specifically outlines a picture of the business and the goals to be achieved while the strategic plan lays out the steps that need to be taken to not only achieve those goals but to even surpass them. Both can be essential tools in business formation.

Comprehensive disclosure documents to avoid disputes

Even though generally when a consumer buys something, the principle of buyer beware applies, when it comes to securities offerings this principle is not applicable. This is because investors cannot inspect a company's facilities and records or books and, in order to protect an investor's interests, securities law provides that companies tell prospective buyers all important information about the company.

When securities are being offered to the general public, a company is required to provide a document known as a prospectus available to the public. If the offering is being made to only a limited number of people, the disclosure document is known as private placement memoranda or offering circulars. In addition to serving as disclosure documents, these documents also help avoid possible disputes in the future.

Let our experience guide you through business litigation

Business tasks can often only be delegated to those who one trusts but the unfortunate truth that many Los Angeles residents may be aware of is that many people often betray that trust and that betrayal not only cuts emotionally but can also have financial repercussions. As discussed previously on the Silicon Beach Business Litigation Attorneys blog, people often use a fiduciary to take certain decisions for them and to act in their interest, but when the fiduciary breaches this trust, it may be possible to engage in business litigation against them.

A breach of a fiduciary relationship claim can be brought through a civil action of negligence and it is often easier to prove than fraud. It must be shown that the two parties entered into a fiduciary relationship with one another and that the fiduciary breached this duty. A variety of damages could result from the suit, from the damages for lost profit, the salary paid to the employee or lost profits even if they were not actually incurred.

What is a fiduciary duty and who owes it?

Los Angeles businessmen and even residents know that, as much as they would like to control all aspects of their businesses and professional lives, it is often not possible to do so due to various factors, such as lack of time or knowledge. In these situations, they often engage in a fiduciary relationship with someone who can act on their behalf and make the necessary decisions for them.

A fiduciary duty is a legal one, in which the fiduciary is to act solely in the principal's benefit. The party that owes the duty is known as the fiduciary and the person to whom the duty is owed is known as the principal. An example of a fiduciary relationship is of the one between a lawyer and a client or a guardian and their wards.

California agency delays vote on cable company merger

As this blog has reported in the past, a merger is attempting to take place in which Comcast Inc., an Internet and cable television service, will overtake its competitor Time Warner Cable. The issue was to come before the California Public Utilities Commission for a vote soon, but has been pushed to early May. In addition, a public hearing regarding the pending merger that was to be held in Los Angeles has also been rescheduled for April 14.

Understanding venture capital and how it can help your business

Starting a business comes with many responsibilities, risks and potential rewards. If you're looking to raise additional capital and possible guidance with experienced professionals to assure your company's success, you may want to create a business plan tailored for a venture capital plan. By doing so, you'll be able to reach out to potential investors to establish a business relationship.

To do this, you should develop a plan that shows both the current financial plan, as well the company's future goals and visions and the potential for growth and success. Your plan should also specifically discuss the exit plan and how the company plans to repay the investment of the venture capitalist. You should be specific in stating how much capital you are looking for, and explain how the venture capital financing will be utilized within your business.

What are the different types of business bankruptcy?

Coming to the realization that your struggling business cannot continue and deciding to declare bankruptcy can be a heartbreaking decision, whether your business is in Los Angeles, Orange County, California or anywhere in the United States. Before you decide to declare bankruptcy, it is important to understand the differences between the three types of bankruptcy and how each of them would apply to your business matters and situation.

Chapter 7 bankruptcy involves an appointed trustee taking possession of all your property and assets. The trustee, along with your creditors, will attend meetings regarding the financial condition of your company. If you have assets, the trustee will sell them and distribute the monies collected to each of your creditors.