Avoiding the Shareholder Rep Problem
My partner, Jason Mendelson, had a post yesterday on AskTheVC about our view on the problem of figuring out who will have to serve as the shareholder rep following the closing of M&A deals. For anyone who doesn’t know what this shareholder rep issue is, Jason does a good job of briefly explaining it.
We’re pretty much done serving as the rep on these transactions. It’s been a problem for us for years, but we’re now working with and advising a company called Shareholder Representative Services that professionally manages the post-closing process so that we no longer have to get stuck with this job. We also get better information and results when SRS is our rep than when one of the other stockholders takes the job.
See Jason’s post more background on what this shareholder rep issue is and why we try hard to avoid it.