Equity Scramble

Usually around this time of year we see a little bit of a summer slowdown, as key executives head for vacations and the heat of the day makes people just a bit lazy.

This year, however, we are experiencing an almost frenzied atmosphere as companies scramble to line up equity investments and contemplate M&A activity.

Part of this may be due to the coming elections.  There have been some arguments that the outcome of the elections may have serious consequences regarding merger approvals and regulatory activities.  On the other hand, many companies are taking a bullish approach, trying to get things done in anticipation of changes ahead.

Our take on this is the same one we have had from the beginning.  If a deal makes sense economically - whether it's an equity deal, a debt deal, a merger or an acquisition - then you should pull the trigger.  Waiting for future events or spending too much time in "analysis paralysis" can mean the loss of valuable opportunities.

We are not advocating that companies fail to do their proper due diligence, we just believe that the opportunities that exist today (higher valuations, increased activity, economic growth) are ones that should be taken advantage of.

Important SEC Development!

In December 2003, LiveEdgar (http://www.liveedgar.com/) began publishing SEC comment letters and issuer responses to the comment letters. They obtained the comment letters by request under the Federal Freedom of Information Act (FOIA). Although these documents may have been available in paper format upon request from the SEC, they were not previously available on the Internet.  That will be changing the first of the month.

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Fund Spotlight: A New Trend in Private Equity

How many times has a company gone out to find equity financing, only to be told “no” at every turn? And how many times have investors wanted to find a partnership that offered the current return of a debt fund coupled with equity enhancement for longer term appreciation? We have found a company that is offering solutions to both companies and investors while carving a new niche in the finance field.  Enhanced Capital Partners, LLC is a national investment firm specializing in state-specific investments in small and emerging companies.

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Key Approaches to Capping
Existing Liabilities

The ability to “cap” or transfer existing liabilities on the balance sheet to a third party (i.e., an insurance carrier) is a financial risk strategy that is once again gaining popularity and is increasingly being used by both public and private companies to manage balance sheet risk.

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