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Venture Briefing: February 21, 2018 Venture Briefing: February 21, 2018

Venture Briefing: February 21, 2018

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M&A 'Firepower' Estimated to Be Up to $5.5 Trillion
With stock prices in the correction zone, the world's largest companies may be poised to unleash their mega firepower to close on some big deals. Aggregate M&A "firepower" -- the sum of a company's readily available cash and debt capacity within its credit rating -- is currently estimated at a mind-blowing $5 to $5.5 trillion for the S&P 500, say strategists at Citi, up markedly from the $3.3 trillion seen at the start of 2017.
(Source: TheStreet.com, 2018-02-13) Read the full article
Companies Expected to Continue to Boost Borrowing in 2018
Get ready for what could be another record year for corporate borrowing. The U.S. tax overhaul is freeing up cash for companies and the Federal Reserve is hiking rates, but chief financial officers are still eager to borrow, UBS strategists wrote.
(Source: Bloomberg, 2018-02-16) Read the full article
Corporations Announce Record $170.8 Billion in Stock Buybacks
Companies are buying their own stocks at a record pace this year, according to Birinyi Associates, an investment firm in Westport, Connecticut. U.S. corporations announced $170.8 billion in stock buybacks between January 1 and February 15, the most since at least the 1980s, when Birinyi began collecting data.
(Source: The Fiscal Times, 2018-02-16) Read the full article
Small Business Lending by Big Banks Hits Record Highs
Small businesses, which have created two out of three new jobs in this country in recent years, are the ones with big capital needs. In 2017, approval rates from large financial institutions hit record highs, according to the latest small business lending index from online lending marketplace Biz2Credit, which analyzed more than 1,000 small business loan applications.
(Source: The Washington Post (free reg. req'd), 2018-02-12) Read the full article
Small Business Optimism Index Rose Two Points in January
The index of small business optimism from the National Federation of Independent Businesses climbed two points to a reading of 106.9 in January. What's more, the number of respondents saying "now is a good time to expand" hit an all-time high in January.
(Source: MarketWatch, 2018-02-13) Read the full article
Several Factors Causing Corporate America to Boost Spending
An elixir of tax relief, a less-stringent regulatory landscape and healthier global demand is unleashing a heady pace of capital spending by corporate America. The government's latest report on gross domestic product showed corporate outlays for equipment sprinted ahead in the fourth quarter at the fastest rate in more than three years.
(Source: Bloomberg, 2018-02-08) Read the full article
V.C. Firms Use Side Letters to Address Diversity Problems
There have been internal investigations, Medium mea culpas and Decency Pledges -- all part of how Silicon Valley venture capital firms have reckoned with a year of invigorated conversation about sexual harassment and diversity. Now, here's a new attempt to fix the problem: the side letter.
(Source: re/code, 2018-02-05) Read the full article
Private Equity Landscape Changing as 'Megafunds' Take Over
The relationship between private equity managers and investors is changing rapidly after the number of $5 billion buyout 'megafunds' jumped in 2017, according to McKinsey's annual private markets report. Investors are seeking to invest more capital with fewer top private equity firms as cash continues to flow into the previously low-profile asset class.
(Source: Reuters, 2018-02-13) Read the full article
Ex-Walgreens CEO Betting Unused Corporate IP Can Launch Startups
Former Walgreens CEO Greg Wasson thinks he can launch billion-dollar startups with lower risk than a traditional VC firm by helping big companies do something with their unused intellectual property. For the past two years, Wasson has been working through a group called Innventure to help corporate behemoths identify and commercialize new technologies.
(Source: Forbes.com, 2018-02-16) Read the full article
 
 
 
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Go back, do it again A look at buy/sell agreements, rock band Steely Dan
David H. Hight

Most business owners have been advised at some point to adopt agreements dealing with company ownership and succession, commonly known as buy/sell agreements, and to keep them up to date. The recent lawsuit involving the rock band, Steely Dan, provides a powerful reminder of the importance of that advice. Read full article online.

 

Red Flag Alert: Sharing HR Information Outside Your Organization Risks Federal Criminal Antitrust Liability
Anthony P. Aaron Michael A. Blickman

In a little-noticed presentation to the Antitrust Research Foundation on Jan. 19, 2018, at George Mason Law School, Department of Justice Assistant Attorney General Makan Delrahim revealed the DOJ is preparing to file criminal charges against a number of yet-unnamed employers for violating federal antitrust laws. Read full article online.

 

 
     
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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