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Published:September 30th, 2012 08:51 EST
Let Facebook`s Loss Be Your Gain

Let Facebook`s Loss Be Your Gain

By Joel G. Block (Mentor/Columnist)

If you ever needed a more convincing reason to hire a great securities attorney to put your deal together, look no further than the recent Facebook IPO debacle. Investors have lost billions and they are scrambling to pin those loses on someone " and the road map to the money and the logic for getting it is outlined in the offering documents (parallel to what us private equity guys refer to as a Private Placement Memorandum).

The losing investors are saying that the risks of adaptation to mobile devices weren`t made clear in those documents. In other words, if investors knew about how hard adapting to mobile devices was, then they would not have invested " so give me my money back.

This is a smokescreen " like most legal complaints are. But people what to be made whole so they will look for any reason to sue. If everything went great " these would be non-issues.

You can read the news article about Facebook mess here:

Don`t skimp on putting together your legal documents. Build out a great Operating Agreement, Private Placement and Subscription Agreement. Investors will appreciate it and it will keep you out of trouble.

Learn from the Facebook debacle. Do it right or don`t do it. And if you want to do it right, you should start by attending our upcoming Deal Making Symposium and Syndication Seminar in Las Vegas, November 4 to 7, 2012.

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If you have an opinion or thought on this topic, please write a comment in the form below. Share this blog with your friends. Thank you for being one of our loyal readers. We appreciate you and are rooting for your success. Often dubbed a "Growth Architect" by his clients, Joel Block advises companies on explosive growth strategies by driving revenues and sales. Well known in the capital markets, Joel is a successful entrepreneur, speaker, advisor and is an astute investor.

Joel is CEO of Bullseye Capital , a full-service real estate company supporting owners and buyers of real estate assets with brokerage, leasing, property management, and mortgage services. Joel is also the founder of the Bullseye Capital Real Property Opportunity Fund, LLC which is an investment company that acquires distressed real estate by working with accredited investors.

A leader in real estate syndication, we offer seminars to assist others in acquiring the skills needed to raise syndicate capital to acquire properties. Imagine knowing how to pool funds to purchase any real estate investment, whether single family, multi-family, commercial, or anything else. For more information and complete details, please go to