Guidance
Our knowledge, distilled.
Every step of the way, startups have a lot to think about. We help ease that burden by considering all the angles and providing clients with clear, forward-looking advice. We know just how quickly the startup landscape can change, so we proactively outline emerging issues and provide actionable recommendations for managing the challenges and opportunities those developments present.
Articles
Setting the Exercise Price: HMRC versus Section 409A Valuations
Understanding how HMRC-agreed valuations and U.S. 409A valuations differ can help companies set appropriate exercise prices and manage tax risks on both sides of the Atlantic.
Building the Equity Incentive Framework in the U.S. Post Delaware Flip
Following a Delaware flip, founders need to consider how the new U.S. parent company will use equity to attract and retain talent across borders. That means choosing a plan structure that supports the company’s hiring ambitions while accommodating the different tax and legal requirements applicable to its workforce. This article explores the available approaches, from adopting a U.S.-style plan with UK arrangements to retaining a UK-focused scheme, and explains the principal types of U.S. stock options.
Equity Isn’t Equal: How Stock Options Work Differently After a Delaware Flip
An option over UK company shares does not automatically become an option over TopCo shares when the shareholders exchange their shares. Depending on the plan terms, tax objectives and transaction mechanics, options may be assumed or exchanged by TopCo, exercised before the flip, cashed out or canceled and regranted.
Getting Founder Equity Right: Key Issues Every UK Startup Should Consider Early
The most successful startups recognize early on that tax considerations should form part of the founder equity conversation from the outset. The decisions founders make when the business has no value are often the same decisions that resurface years later when it does.
Beyond the Flip: Data Protection Considerations for U.S. Expansion
When considering a U.S. flip, data protection issues may not always be the top of a company’s list of concerns, but differences between U.S. data protection laws and those found in the UK and EU do create potential, material pitfalls for those looking to transfer personal data across the Atlantic and/or collect data in the United States.
Who Owns the Innovation? IP Strategy in a Transatlantic Company
For many emerging companies, the intellectual property (IP) protecting that innovation is the crown jewel. If the corporate and IP structures drift apart, the result can affect valuation, delay a financing, or leave the investor-backed company dependent on rights it does not securely control. However, moving IP between jurisdictions can often result in other issues, such as tax falling due. So what do founders need to be aware of?