Venture Briefing: May 3, 2017 Venture Briefing: May 3, 2017

Venture Briefing: May 3, 2017

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High Court Could Take Hard Stance on Where Companies Can Be Sued
The U.S. Supreme Court appeared poised to clamp down on where corporations can be sued, a potential setback for plaintiffs' lawyers who strive to bring cases in courts and locales they consider friendly. The nine justices in two separate cases heard appeals of lower court rulings allowing out-of-state injury lawsuits against drug maker Bristol-Myers Squibb Co. and BNSF Railway Co.
(Source: Reuters, 2017-04-25) Read the full article
First Quarter Saw Strongest M&A for U.S. Targets in Five Years
The first quarter of 2017 was the strongest first quarter for M&A involving U.S. targets valued at $100 million or more in at least five years, according to Bloomberg Law data. Acquirers announced or proposed 287 acquisitions totaling more than $581.6 billion this past quarter.
(Source: BNA, 2017-04-27) Read the full article
Companies Gear Up for $42.5 Billion in Loans to Spur M&A Activity
U.S. companies have lined up at least $42.5 billion of loans to back a flurry of mergers in sectors ranging from health care to food and software in the second quarter as corporations try to grow by acquisition. Near record stock markets and strong investor demand for debt are fueling transactions that had been on hold due to volatility created by the presidential election late last year.
(Source: Reuters, 2017-04-28) Read the full article
Rules Could Make State Crowdfunding Efforts Easier to Implement
Startups across the country could soon get a boost thanks to changes in federal rules that will make it easier for them to find local investors. In the past five years, more than 30 states have legalized state crowdfunding, an offshoot of equity crowdfunding that allows small companies to sell stock but limits the sales to residents of their own states.
(Source: U.S. News & World Report, 2017-04-20) Read the full article
Just One in 100 Women Using Venture Capital to Get Businesses Going
Female entrepreneurs do a lot of things to get their businesses off the ground, including raiding their life savings, taking loans, hitting up friends and family, and even relying on credit cards. But just one in 100 end up using venture capital.
(Source: Fortune, 2017-04-26) Read the full article
Report Finds Small Business Owners Steering Clear of More Debt
A report on small business credit released by 12 Federal Reserve regional banks across the country found that small business owners are holding fast to their aversion to taking on more debt, even though they're optimistic about the future. The report, based on a 2016 survey of businesses that have employees, found about three-quarters of company owners used personal funds when their businesses needed cash, instead of seeking financing including loans.
(Source: Post Bulletin, 2017-04-23) Read the full article
PayPal Has Boosted Small Business Lending to Over $3 Billion
PayPal's small-business financing unit has been on a tear since launching in 2013: The company is announcing that it has topped $3 billion in financing to more than 115,000 businesses worldwide. That represents an acceleration of its lending to small businesses, which passed the $1-billion milestone a year and a half ago, and is now growing at a rate of $4.5 million a day.
(Source: Forbes.com, 2017-05-01) Read the full article
Carried Interest Loophole May be Targeted in Tax Overhaul
The Trump administration's push to overhaul tax laws might soon target a loophole used by some financial managers to lower their tax rates, White House Chief of Staff Reince Priebus said. Priebus hinted that carried-interest could be on the chopping block and warned against analysts taking the view that financial managers would keep benefiting from it.
(Source: Business Insider, 2017-04-30) Read the full article
Venture Firms Test Using Big Data to Guide Their Investments
In recent years a small group of emerging venture firms have been testing ways to remake the art of venture capital and turn it into more of a science. They're relying, to varying degrees, on what are, for their industry, radical new uses of software and data to help guide their investments.
(Source: The Wall Street Journal, 2017-04-24) Read the full article
Companies with Higher-Paid Auditors Have Fewer Restatements
The offices of Big Four accounting firms that pay lower salaries for audit help have a higher portion of clients that experience restatements, according to a new study. "We obtain a sample of data on how much Big Four accounting firms are paying their auditors, and find that, controlling for the type of office, city, and a whole host of other factors, the more you pay your auditors, the fewer restatements you get in an office," writes Jeffrey L. Hoopes, an assistant professor of accounting at the University of North Carolina and a co-author of the study.
(Source: CFO.com, 2017-04-27) Read the full article
Family Business Owners' Kids Grapple with When It's Their Turn
Almost seven in 10 baby boomers plan to work past the age of 65. That means a lot of family businesses are dealing with parents who aren't ready to retire, and their children who aren't sure when and if they will ever run the show on their own.
(Source: The Wall Street Journal, 2017-04-30) Read the full article
 
 
 
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Connect With Our Dealmakers at Opus Connect's New York City Chapter Event
Thomas Kesoglou Christopher Bordoni Chase Stuart

Ice Miller is proud to co-host the New York City Chapter of Opus Connect on Wednesday, May 10, 2017 from 6:00-8:00 p.m. This month's event will feature: Paul Robertson, Senior Portfolio Manager of Bernstein. We would be delighted for you to join us. Register here.

 

A Conversation with and Lessons to be Learned from Bill O’Reilly


Michael Blickman

[This is a conversation that absolutely did not occur and considerable license is being exercised. The point of this is to learn a few important lessons from Bill O’Reilly’s exit from Fox News.]  

Date:  The day of O’Reilly’s termination
Place:  Rupert Murdoch’s office
Attendees:  Rupert Murdoch (Fox News CEO) and Bill O’Reilly  

Murdoch: Bill, I’m sorry to tell you that we’ve reached the end of the line with you and have to let you go. Frankly, I’m shocked at your behavior and what we have heard. I’m issuing a memo to Fox News staff today to tell them about your departure and that “we want to underscore our consistent commitment to fostering a work environment built on the values of trust and respect.”    

O’Reilly: “Fostering a work environment….?!”  “Consistent commitment?!” Why does this remind me of Captain Renault shutting down Rick’s Café Américain in Casablanca, exclaiming that he was “shocked, shocked to find that gambling is going on here!?”

Lesson 1: Culture “Trumps” All. What was the culture at Fox News and did it contribute to the issues facing the company with O’Reilly? Corporate culture is complicated, but most experts say that it starts at the top.

Read more here.

 

By The Numbers

Currently, tax authorities treat carried interest income as capital gains, making it eligible for a rate as low as 23.8 percent. The top tax rate for ordinary income is 39.6 percent.
Source: Bloomberg.com - Trump Still Targeting Carried Interest, White House Official Says

 

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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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