Venture Briefing: September 21, 2016 Venture Briefing: September 21, 2016

Venture Briefing: September 21, 2016

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Value of Broken M&A Transactions Reaches $682B So Far in 2016
The value of broken M&A transactions has spiked to $682 billion so far this year and is on track to break the record set in 2007 when deals valued at $923 billion fell apart, according to Thomson Reuters. The number of deals that have collapsed this year stands at 708 through September 15, outpacing each of the last five years and rivaling the period between 2008 and 2010 when financing markets seized up.
(Source: Reuters, 2016-09-16) Read the full article
Emerging Tech Companies Could Give Hope to Dry IPO Market
Through the first eight months of 2016, there's been exactly one venture-backed technology IPO for U.S. companies. While there's no indication that the IPO floodgates are about to open, a few emerging tech companies are at least signaling that it's time to give public investors a shot.
(Source: CNBC, 2016-09-09) Read the full article
SEC Urged to Go Further on Easing Small Company Reporting Rules
The Securities and Exchange Commission's proposal to ease the burden of financial reporting on smaller companies should go further, according to comment letters filed in recent months. The regulator proposed raising the threshold for "smaller reporting company" status to $250 million in publicly traded shares. That's up from $75 million.
(Source: The Wall Street Journal, 2016-09-01) Read the full article
Small Businesses Having to Pay More for Their Loans, Survey Finds
Small businesses are increasingly having to pay more for their loans, according to a new survey that examines credit constraints for more moderate ventures across the U.S. and Europe. Only 48 percent of small- and medium-sized businesses said they can get financing at rates below eight percent. This is according to a new survey from C2FO, a financial technology startup that has created a marketplace where small- and medium-sized businesses can get paid early by the large companies they supply.
(Source: Bloomberg, 2016-09-13) Read the full article
U.S. Tightens Restrictions on Companies' Foreign Tax Credits
Apple and other U.S. multinationals will face new curbs on tax loopholes under a rule imposed by Washington, part of a scramble among governments worldwide to bolster their corporate tax bases. Acting shortly after a European Union grab for billions of dollars in back taxes from Apple, the U.S. Treasury said it was tightening restrictions on companies' use of foreign tax credits to reduce what they owe in U.S. taxes.
(Source: Reuters, 2016-09-15) Read the full article
Key Steps to Compliance with New Overtime Rule
The Department of Labor's new rule regarding the overtime provisions of the Fair Labor Standards Act will go into effect Dec. 1, which the DOL projects will impact 4.2 million workers across the country. This rule will impose a substantial increase in the minimum annual salary that must be paid to employees to qualify for certain exemptions from the FLSA's overtime pay protections -- from $23,660 to $47,476.
(Source: Workforce Management, 2016-09-07) Read the full article
Census Bureau Data Show Number of New Startups at 40-Year Low
New business creation in the U.S. (a fancy way of saying "startups") is at nearly a 40-year low. Only 452,835 firms were born in 2014, according to the most recent U.S. Census data. This is well below the 500,000 to 600,000 new companies that were started in the U.S. every year from the late 1970s to the mid- 2000s.
(Source: CNNMoney.com, 2016-09-08) Read the full article
Apple Case Has Obama Calling for Better Tax Policy Coordination
International tax policies should be better coordinated among countries to avoid problems, President Barack Obama said, following the European Union decision that would require Apple to pay billions of dollars in back taxes. Without naming the EU, Obama said there are risks to decisions like the one requiring Apple to pay more taxes in Ireland.
(Source: Bloomberg, 2016-09-05) Read the full article
Founder's Syndrome Becoming Bigger Problem for Start-Up Firms
Founder's syndrome -- when a founder thinks he or she knows what's best and doesn't want critical feedback -- has long been a tech industry affliction. But these days, it's becoming a bigger problem.
(Source: SiliconValley.com, 2016-08-24) Read the full article
Organizations Helping Older Americans Take on Entrepreneurship
Many older Americans want to start a business but find they lack certain skills, and sometimes also the confidence to try something new. In response, more organizations focused on training entrepreneurs are targeting baby boomers.
(Source: The New York Times, 2016-09-09) Read the full article
 
 
 
Headlines
Is This the Last Year for Valuation Discounts?
Kevin M. Alerding

If your entire business is worth $1,000,000, then how much is a 20% interest in your company worth? If you said $200,000, then you are right. And wrong. Read full article online.

 

By The Numbers

While growth of median income is promising news following several years of decline, median incomes remain 1.6 percent lower than they were in 2007 and lower still than the 1999 median-household-income peak of over $57,000 in time-adjusted dollars.
Source: The Atlantic - Tiny Sliver of Good News Only a Reminder of the Economy’s Overall Terribleness

 

 

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Ice Miller has been one of the most active law firms in the private equity industry over the last decade, representing both entrepreneurs building great companies and the private equity firms and individuals that invest in them.  We have extensive experience with all types of funds (formations and operations); mezzanine and senior secured financing; leveraged buyouts, roll-ups, build-ups, and consolidations; divestitures and exits; and complex litigation on behalf of investors and privately financed companies.  In addition, over the past 10 years, Ice Miller has represented hundreds of emerging growth businesses in various industries on such matters as entity formation, capitalization, capital raising, alternative financing, intellectual property rights and protection, growth and exit strategies, corporate governance, tax matters, and many other legal issues that are critical to the growth and success of an emerging company.

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This publication is intended for general information purposes only and does not and is not intended to constitute legal advice.  The reader must consult with legal counsel to determine how laws or decisions discussed herein apply to the reader's specific circumstances.

 
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