Wed.May 08, 2024

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Public Company Watch: April 2024

JD Supra: Mergers

In the April edition of our Public Company Watch, we cover key issues impacting public companies, including the SEC’s recent enforcement action regarding “AI Washing,” the SEC’s recent shadow trading case, proposed amendments to the DGCL in response to recent decisions in the Delaware Chancery Court, the ban on non-compete agreements issued by the FTC and other regulatory developments, among other topics.

Trading 182
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7th Cir. Fires Another Shot at Mootness Fee Awards

Deal Lawyers

The 7th Circuit was one of the first federal courts to take a dubious view of mootness fee awards in M&A disclosure litigation, and its decision last month in Alcarez v. Akorn, (7th. Cir; 4/24), suggests that the Court’s views haven’t mellowed with time.

M&A 122
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How Founders Can Get Paid (and Keep the Cash): A Practical Guide

JD Supra: Mergers

Understanding market trends and effective planning strategies can yield improved financial results for start-ups and growth companies. Starting your start-up. What type of entity you form impacts your taxes, which hits your bank account both immediately (quarterly taxes) and in the long term (at exit). A C Corporation(c-corp) is taxed on income (currently at historically low rates), and if income is paid to shareholders (as dividends), shareholders are also taxed.

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AI needs to keep cool—literally. That's driving demand for these infrastructure companies

CNBC: Investing

The advent of AI has sent demand for data centers skyrocketing, along with industrial components to keep all the AI chips from overheating.

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Navigating the Future: Generative AI, Application Analytics, and Data

Generative AI is upending the way product developers & end-users alike are interacting with data. Despite the potential of AI, many are left with questions about the future of product development: How will AI impact my business and contribute to its success? What can product managers and developers expect in the future with the widespread adoption of AI?

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The FTC Requests More Info About Walmart’s $2.3 Billion Vizio Acquisition

JD Supra: Mergers

The deal is about data, advertising, and Amazon. The Federal Trade Commission (FTC) has kicked off an antitrust inquiry into Walmart Inc.’s proposed acquisition of smart TV company Vizio Inc., which the companies announced in February at a value of $2.3 billion.

More Trending

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AI and Tech in M&A: What to know about AI and tech advancements in M&A due diligence

JD Supra: Mergers

Many law firms have changed their transaction management processes significantly with recent advancements in technology, especially the development of artificial intelligence. AI and technology innovations have aided deal lawyers in various ways, but most commonly it’s being used in connection with contract review and dynamic closing checklists. Originally published in Smart Business - May 2024.

M&A 167
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A bearish options trade on a one-time tech darling that could struggle in the new AI world

CNBC: Investing

Tony Zhang believes shares of the Salesforce are at risk of falling even lower and gives a bearish options trade to capitalize on it.

Trading 112
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Is Your Compliance House In Order? Tips for Ensuring Private Equity and Portfolio Company Compliance in the Wake of the Recent Request for Information

JD Supra: Mergers

The recent Request for Information by the Federal Trade Commission (FTC), Department of Justice (DOJ) and Department of Health and Human Services (HHS) seeking input on the effects of private equity (PE) investment in the healthcare sector underscores the importance of an effective compliance program. The best way to limit your exposure as a PE firm is to avoid a compliance misstep in the first place.

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Secure Firewall & Multicloud Defense: Secure Connectivity With Simplified Policy Across Clouds

Cisco: M&A

Learn how Cisco is bringing on-prem and cloud security together into a unified platform to marry the power of Cisco Secure Firewall and Multicloud Defense.

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Predictions You Can Rely On: How Data Drives Successful Financial Forecasting

Speaker: Robbie Bhathal, Founder & CEO, and Matthew Acalin, Head of Credit Intelligence

In today's volatile financial environment, how confident are you in your company’s financial forecasting? To get the most accurate cash predictions that will lead to long-term financial survival, real-time data is critical. Innovative cash management strategies can lead to better credit opportunities, more sustainable growth, and long-term financial prosperity.

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FTC Pioneers Novel Remedies in the Exxon/Pioneer Merger

JD Supra: Mergers

On May 2, 2024, the Federal Trade Commission (FTC) announced a consent order in the matter of Exxon Mobil Corporation’s (Exxon) acquisition of Pioneer Natural Resources (Pioneer). The consent order is unusual in that the sole remedy obtained by the FTC is a prohibition on certain appointments to Exxon’s Board of Directors (Board) post-merger. The FTC alleges that the bans instituted by the consent decree “limit[] the likelihood of coordination in crude oil markets.

Mergers 167
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David Zervos: Blame traders living in rate cut la-la land — not the Fed — for recent market turbulence

CNBC: Investing

The Jefferies' chief market strategist discusses why consensonomics gets an ‘F’.

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Raising Capital for Maryland Social Equity Cannabis Businesses

JD Supra: Mergers

Congratulations to those who won a cannabis social equity license in the Maryland lottery! To take advantage of this exciting business endeavor, check out these suggested priority actions and read on for essential considerations around raising capital. (Note that this article is current as of May 6, 2024, and cannabis regulations and guidance can change quickly.).

Equities 167
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How 401(k) Drives Inequality

The New York Times: Banking

How an obscure, 45-year old tax change transformed retirement and left so many Americans out in the cold.

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How Embedded Analytics Gets You to Market Faster with a SAAS Offering

Start-ups & SMBs launching products quickly must bundle dashboards, reports, & self-service analytics into apps. Customers expect rapid value from your product (time-to-value), data security, and access to advanced capabilities. Traditional Business Intelligence (BI) tools can provide valuable data analysis capabilities, but they have a barrier to entry that can stop small and midsize businesses from capitalizing on them.

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European Court of Justice Considers Limits on European Commission's Merger Review Powers

JD Supra: Mergers

Applying its recent re-interpretation of Article 22 of the European Union Merger Regulation (“EUMR”), which enables Member States to refer to the European Commission (the “Commission”) transactions that do not reach either EU or national merger control thresholds, the Commission reviewed and prohibited in 2023 the acquisition by genomic sequencing company Illumina of biotech GRAIL.

Mergers 167
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JPMorgan says the late Charlie Munger would love this wonderful bank trading at a fair price

CNBC: Investing

JPMorgan said this regional bank is so appealing that it would have attracted attention from the late Charlie Munger.

Bank 86
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Secondary Buyouts on the Rise – Will it Last?

JD Supra: Mergers

In a time when exit strategies have pivoted, and options might be more limited, it is no surprise that secondary buyouts have rebounded. According to recent coverage from PitchBook, secondary buyouts are making up a larger share of private equity exits as firms look to speed up sales of portfolio companies.

IT 149
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These stocks struggling over the past month are primed for a comeback

CNBC: Investing

A slate of names that have suffered recently could be poised for a rebound.

Stock 101
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Embedding BI: Architectural Considerations and Technical Requirements

While data platforms, artificial intelligence (AI), machine learning (ML), and programming platforms have evolved to leverage big data and streaming data, the front-end user experience has not kept up. Holding onto old BI technology while everything else moves forward is holding back organizations. Traditional Business Intelligence (BI) aren’t built for modern data platforms and don’t work on modern architectures.

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The Tragic Investment Banker Death: Should Senior Bankers Go to Jail for Killing Their Junior Staff?

Mergers and Inquisitions

In case you’ve been offline for the past few days, it has happened yet again: An investment banker has died on the job. You can read about it in various threads on Wall Street Oasis , Reddit , eFinancialCareers , LinkedIn, and more, so I won’t repeat the full details here. In short, this banker was an Associate in the FIG team at Bank of America and had a very accomplished track record before joining the firm.

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BMLL backs industry cloud migration with move of data lab onto AWS Marketplace

The TRADE

The BMLL Data Lab has been made available on Amazon Web Services (AWS) Marketplace, providing market participants flexible access to data and analytics. AWS Marketplace is a digital catalogue with software listings from software and data vendors that helps find, test, buy and deploy products that run on AWS. The BMLL Data Lab is a data science research sandbox which co-locates data and computes in an AWS cloud environment, offering access to full-depth order book data, enabling users to conduct

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Navigating the Deal: The Crucial Role of Emotional Intelligence in Business Negotiations

Sun Acquisitions

In the fast-paced world of mergers and acquisitions, where figures and spreadsheets often take center stage, a subtle yet powerful force can shape a deal’s success or failure: emotional intelligence (EI). Understanding and managing one’s own and those of others plays a pivotal role in negotiating business deals, particularly in the intricate dance of buying or selling a business.

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These ETFs promise investors downside protection — at a cost

CNBC: Investing

Investors looking for protection against market downside are turning toward buffer ETFs.

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How to Leverage AI for Actionable Insights in BI, Data, and Analytics

In the rapidly-evolving world of embedded analytics and business intelligence, one important question has emerged at the forefront: How can you leverage artificial intelligence (AI) to enhance your application’s analytics capabilities? Imagine having an AI tool that answers your user’s questions with a deep understanding of the context in their business and applications, nuances of their industry, and unique challenges they face.

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What is Salvage Value? Explanation and Examples in Finance

Peak Frameworks

If you're interested in breaking into finance, check out our Private Equity Course and Investment Banking Course , which help thousands of candidates land top jobs every year. What is Salvage Value? Salvage value , often referred to as residual value, is the estimated value of an asset at the end of its useful life. Salvage value is what a company expects to receive or can sell an asset for after it has fully depreciated.

Finance 52
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BlackRock shifted billions into this active ETF. Here’s why it matters to regular investors

CNBC: Investing

BlackRock's U.S. Equity Factor Rotation ETF has surged to more than $7 billion in assets after a model portfolio change in March.

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ESOP Repurchase Obligations and the Impact on Your Company Valuation

PCE

ESOP companies have a statutory requirement to provide sufficient cash to the ESOP for purposes of repurchasing employee shares. These shares are typically purchased from employees upon their retirement , voluntary or involuntary termination, or death. For most of your ESOP participants, a significant payout can represent years of dedication and hard work and, more important, a significant component of their retirement savings.

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New York Knicks parent company to see strong earnings thanks to NBA playoff run, Bank of America says

CNBC: Investing

A slam dunk run from the New York Knicks and Rangers should bode well for this live entertainment company.

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Embedded Analytics Insights for 2024

Organizations look to embedded analytics to provide greater self-service for users, introduce AI capabilities, offer better insight into data, and provide customizable dashboards that present data in a visually pleasing, easy-to-access format. To better understand the factors behind the decision to build or buy analytics, insightsoftware partnered with Hanover Research to survey IT, software development, and analytics professionals on why they make the embedded analytics choices they do.

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Should I Sell My Insurance Agency?

Sica Fletcher

Quite a few articles already detail the process of “how” to sell an insurance agency (you can read our article on that subject here ), but very few get to the bare bones of “why.” For that very reason, our team sat down and wrote this article, which essentially comprises the advice we give to prospective clients during an initial consultation. If you’re asking, “ should I sell my insurance agency,” the three big questions you must answer first are: Why Do I Want To Sell?

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Post-COVID recovery and green transition

European Investment Bank

This first publication, out of a series of four, provides new insights in investment conditions and global supply chains. It aims to assess the resilience of European value chains and industrial ecosystems to transitory and structural shocks, particularly during post-COVID recovery. To assess to what extent industrial ecosystems are fostering new avenues for future growth and enhancing their resilience to external shocks, this report draws upon firm-level data collected for the EIB Investment Su

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The 5 Influences Shaping Software M&A Valuations in 2024

Software Equity Group

Do you know how potential buyers value your SaaS business? 2023 saw a myriad of factors impact SaaS M&A multiples, including economic developments, technological advancements, and a public market rebound. But what are the key influences shaping valuation multiples in today’s M&A deals? As you contemplate your exit strategy, it becomes increasingly crucial to understand the external factors driving the valuation of your SaaS company.