Understanding Preferred Stock

A company’s first priced round of financing is a critical point in its development because the “preferred stock” typically issued to investors conveys significant rights that impact both the founders’ economics and their ability to control the company. It is critical that entrepreneurs are familiar with typical preferred stock terms and what is “market” for each term. In this workshop, Benjamin Hron of Brown Rudnick will take you through the most common preferred stock terms and help you understand their importance and how they relate to each other.

Topics will include:

Liquidation preference
Anti-dilution rights
Voting rights
Preemptive rights
Drag along rights

About the Speaker

Benjamin Hron is a partner in the Corporate Practice Group of Brown Rudnick LLP. His practice focuses on representing companies in general corporate matters, debt and equity financing, mergers and acquisitions, securities law compliance, and joint ventures. Ben also represents private equity and venture capital funds, angel investors, and financial institutions in connection with the financing of public and private companies.

Ben serves as outside general counsel for a number of his clients, advising company management on legal issues ranging from day-to-day matters to large strategic initiatives. He also coordinates and supervises the work of experts in other practice areas when appropriate. In addition to working with established companies, Ben has extensive experience working with entrepreneurs and startups, often getting involved when a business is still in its infancy and helping guide the founders through the formative early stages of their company’s development.

As counsel to investors and financial institutions, Ben helps structure and negotiate debt and equity financing transactions, including venture capital, growth capital, asset-based loans and distressed debt workouts. He also frequently writes and lectures on the laws and regulations governing financing transactions and recent trends in deal terms.