Tip of the Week: Knowing the Pros and Cons of Reverse Mergers vs. IPOs
By David Feldman at 30 March, 2010, 10:28 am
To those who just recently started following reverse mergers, I think it is a timely opportunity to rehash why reverse mergers or other alternatives such as self-filings can be a better option than the traditional initial public offering (IPO). Let me briefly illustrate why a small to middle market company would seek out this option. [...]
Read More >>Tip of the Week: Financing in Reverse Mergers
By David Feldman at 16 March, 2010, 1:58 pm
Generally speaking, financing is easier to obtain when a company goes public because investors are seeking an opportunity for liquidity. Although it is difficult to overstate the importance of financing as regards reverse mergers, about half of these mergers, in recent years, involve no financing whatsoever. This does not imply that there is no intention [...]
Read More >>Tip of the Week: Post-Merger Registration
By David Feldman at 21 January, 2009, 6:55 pm
Life used to be so simple. Companies merged with shells, after which any shareholders holding restricted, or untradable shares, would register their shares for resale and be able to sell them in a matter of a few months. Sometimes, this registration encompassed almost all the shares outstanding in the merged company. Trading then commenced, and the reverse merger technique was validated.
Read More >>Tip of the Week: Watch Out for Time Pressure
By David Feldman at 16 January, 2009, 5:28 am
A common practice with problem partners or shell owners involves insisting a deal must be consummated quickly. In too many cases, the shell operator pressures a private company’s principal to ignore his attorney’s entreaties to ensure that full due diligence is completed. “We have another candidate for the shell,” or “You know our shell is clean, what’s all this need for due diligence?” are common themes in deals. Be suspicious of these tactics.
Read More >>Tip of the Week: Time and Money
By David Feldman at 12 January, 2009, 5:39 am
Some of the issues that arise in the deal-making process relate to timing. A desire to complete a financing prior to the merger creates disclosure, valuation, and structuring challenges. In these instances I try to encourage clients to wait and complete the transaction in the name of the public entity either at closing or shortly thereafter.
Read More >>Ads Make it to the Homepage of the New York Times
By David Feldman at 10 January, 2009, 7:16 am
With newspapers constantly seeking out methods to combat a combination of subscription decreases and declines in overall ad spending, the New York Times announced today that it has begun offering ad placements on its front page below the fold. CBS was the first to appear with a campaign that debuted today.
Read More >>Economic Chill May Open New Employment Doors
By David Feldman at 7 January, 2009, 5:08 am
Directly testing the chill economic waters, more than 150 MIT School of Management MBA students embark on their annual “Tech Treks” this week, heading for Silicon Valley, Seattle and Boston in search of jobs, contacts, and new doors to open.
Read More >>Traditional Media Sparks Word of Mouth
By David Feldman at 4 January, 2009, 4:49 pm
With the current media shift towards digital mediums such as Internet and Mobile Devices, I thought it would be interesting to discuss what the industry experts had to say. A new research study fielded among nearly 1,000 digital influencers demonstrates that traditional and online media are both important sources when it comes to sharing news. The study, developed by IM MS&L, MS&L’s influencer marketing practice to determine how to construct effective online influencer campaigns, in conjunction with leading research firm Ipsos Public Affairs, finds that traditional media play a vital role in igniting the process that leads influencers to share information online and via word of mouth. More than eight in 10 influencers say they often go online to find out more after reading something in a magazine or newspaper (84%) or hearing something on TV or the radio (84%.) These traditional media sources help shape public opinion in the complex world of online influence
Read More >>Shareholder Class Action Filings To Highest Level in 6 Years
By David Feldman at 30 December, 2008, 5:33 am
The ongoing credit crisis and turmoil in the financial sector have fueled a major surge in securities class action litigation in 2008, according to a new study from NERA Economic Consulting. Filings are projected to reach 267 by year’s end, which would represent a 37% increase over 2007 and the largest annual total since 2002. Excluding atypical cases (related to the IPO securities litigation, analyst cases, and mutual fund market timing), filings in 2008 are on pace to reach a 10-year high.
Read More >>A Bright Spot for the Economy – Smaller Businesses' E-Commerce
By David Feldman at 19 December, 2008, 4:12 am
No doubt you’ve heard countless reports regarding online retail sales, however one sector of the industry has not garnered the same amount of press as the traditional Fortune 500 companies: small businesses. Considering that the long-tail makes up a considerable portion of the economic well-being, I thought this was an important statistic to follow. Thankfully the Holiday Season has been positive for small to medium sized companies. Network Solutions announced today that its e-commerce customers saw a collective 10% year-over-year increase in sales on Cyber Monday, the highly anticipated start of online holiday shopping. While retailers across the country reported slow same-store sales, smaller online entrepreneurs enjoyed a jump in holiday sales this year, with more consumers shopping online in greater numbers.
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