Venture Briefing: August 24, 2016 Venture Briefing: August 24, 2016

Venture Briefing: August 24, 2016

Ice Miller website

Initial Public Offerings Expected to Pick Up in Fall
After spending the first half of the year in slow motion, initial public offerings are expected to take off this fall. It's something Wall Street has been waiting on for a while now.
(Source: CNBC, 2016-08-17) Read the full article
Global M&A Activity Expected to Stay Flat Through End of Year
After a slight decline in Q3, year over year global M&A activity will stay relatively flat through the end of 2016, according to the Q4 2016 Intralinks Deal Flow Predictor that forecasts the volume of future M&A announcements by tracking early-stage M&A activity. In North America, early-stage M&A activity declined by 11 percent and Asia-Pacific (APAC) declined by 0.4 percent.
(Source:, 2016-08-22) Read the full article
SEC Boosts Crackdown on Firms' Non-GAAP Numbers, Vague Language
The Securities and Exchange Commission has stepped up its crackdown on made-up numbers and vague language in U.S. companies' earnings filings, sending the first of what is expected to become a steady flow of letters to finance heads requesting more information for investors. In May, the SEC updated guidance on the use of metrics that don't conform with Generally Accepted Accounting Principles, or GAAP, telling companies to expect comment letters if they failed to comply.
(Source: MarketWatch, 2016-08-18) Read the full article
Corporate Default Rate Likely to Soar to 5.6% by June 2017
The U.S. corporate default rate is expected to jump 30 percent and hit 5.6 percent by June 2017, according to a jarring warning issued by credit-rating firm S&P Global Fixed Income Research. Financial stress applied mainly by falling oil prices is "a driver of defaults" and why 99 U.S. companies with the lowest credit ratings could default during the 12 months ending June 2017.
(Source: USA Today, 2016-08-19) Read the full article
Treasury Department Moves to Tighten Family Limited Partnerships
The Treasury Department has moved a step closer to tightening the way family limited partnerships are valued for tax purposes, and the prospect that the tax code could be changed by the end of this year has tax planners pushing their clients to consider stepping up estate and business planning, or risk paying more taxes. Earlier this month, the Treasury Department issued "proposed final regulations" to eliminate a provision in the tax code that effectively allows wealthy people to greatly discount the value of shares in a family limited partnership given to family members.
(Source: The New York Times, 2016-08-19) Read the full article
Report Claims One-Third of 'Unicorns' Will Be Worth Less Than $1B
Nearly one-third of private tech companies in the United States that have achieved "unicorn" status will eventually be worth less than $1 billion, according to a report. The report from SharesPost, a platform for investing in pre-IPO companies, provides a data-driven analysis of the unicorn market -- both how it was created and how many will survive.
(Source: Reuters, 2016-08-16) Read the full article
Study Identifies 3 Factors Changing How Startups Are Funded
A study from the World Economic Forum found that there are three main factors contributing to the altered funding means for startups today. As the study states, it has been reshaped over recent years by new innovations and confident investors that don't see the status quo as a necessary means of providing capital to startups.
(Source: Tech.Co, 2016-08-19) Read the full article
Data Breaches Have Corporate Boards Focusing on Cybersecurity
As high profile data breaches continue to grab headlines, corporate boards need to make sure they're deeply involved in the cybersafeguards at their companies. The average cost of a data breach globally last year was $4 million, up 29 percent from two years earlier, according to a study by the Ponemon Institute, an independent research group.
(Source: The San Diego Union-Tribune, 2016-08-19) Read the full article
Small Businesses Concerned Over New Government Contracting Rules
Small businesses that contract with the federal government fear proposed changes to regulations will push them out of the bidding process. The joint proposal from the Department of Defense, the General Services Administration (GSA) and NASA, requires agencies to write a report when they choose not to buy supplies or services through existing government contracts.
(Source: The Hill, 2016-08-17) Read the full article
Entrepreneurial Eco-Systems Helps Other Start-Ups Face Obstacles
When start-ups begin, it's akin to Joseph Campbell's mythical hero's journey -- instead of battling hydras and gorgons alone, entrepreneurs often help each other face obstacles like entrenched markets, financing and abject fear of failure. Although there are no precise estimates on how many such ecosystems exist, the Kauffman Foundation, a research organization focusing on entrepreneurship, found that nearly every one of the more than 360 major metropolitan areas in the United States had such a network in place.
(Source: The New York Times, 2016-08-17) Read the full article
SEC Proposes New Rule Governing Business Continuity Plans

On June 28, 2016, the Securities and Exchange Commission (“SEC”) proposed a new rule governing business continuity plans (“BCP”) for investment advisers. If enacted, the Proposed Rule will require investment advisers to adopt, and annually review, written BCPs in order to provide investment advice. Failure to do so will constitute a violation of §206 of the Advisers Act. Read full article online.


By The Numbers

According to the most recent Market Pulse Quarterly Survey Report published this week by the Pepperdine Graziadio School of Business and the International Business Brokers Association small manufacturers grossing between $1 million and $50 million per year were the number one sellers of businesses during this past quarter, beating all other industries including distributors and service firms.
Source: Washington Post - Gene Marks: These folks are selling their businesses more than anyone else


Services Group

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.

Read the complete profile of the Business Group.

Anthony Aaron
Audrey Balint
James Banister
Richard Barnhart
Samuel Beavers
Christopher Bordoni
Edward Braum
Elizabeth Brier
Adam Calisoff
Kristine Camron
Timothy Capen
Joshua Christie
Ryanne Bush Dent
Dustin DuBois
Stephen Edwards
Michael P. Farrell
Harry Gonso
Eric Goodman
Jon Groff
Stephen Hackman
David Hight
Paul Huddle
Steven Humke
Michael Jordan
Josef Keglewitsch
Tom Kesoglou
Dean Leffelman
Christopher McCleary
Chris Michael
Laurie Miller
Michael Millikan
Robert Ouellette
Thomas Pampush
Matthew Servies
Brittney Sharp
Brent Showalter
Scott Snively
Dale Stackhouse
Emily Storm-Smith
Chase Stuart
John Thornburgh
Richard Thrapp
Kristina Tridico
Nancy Valentine
Michelle Zaretsky


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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