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Last week, the SEC announced settled enforcement proceedings against Cantor Fitzgerald for its alleged role in causing two SPACs that it controlled to make misleading statements to investors about the status of their discussions with potential acquisition targets ahead of their initialpublicofferings (IPOs).
With the US initialpublicoffering markets continuing to remain largely closed, and special purpose acquisition company combinations being costly and complex, there’s a new kid in town for foreign companies looking to go public in the US: reverse mergers. Some reverse mergers involving a U.S.
Investment banking is a branch of banking that organizes and enables large, complex financial transactions for businesses, like mergers, IPOs or underwriting. Investment Banking Services InitialPublicOffering (IPO) When a privately-owned business wants to become a publicly traded company, it goes through an IPO , or InitialPublicOffering.
While the ruling has broad implications for many current arrangements (particularly stockholder agreements for public companies), it did provide a path forward, noting that many of these provisions would have been valid if included the corporation’s certificate of incorporation instead of the stockholder agreement.
I still recall the metric that was drilled into me back then: hit $50 million in revenue and a few back-to-back years of profitability and you, too, can go public. The benefits of going public are significant. Companies can choose when to engage with private equity investors and negotiate deals that align with their growth plans.
We see examples of this in management buyouts, initialpublicofferings (IPOs), and strategic mergers and acquisitions (M&A). If you would like help to prepare your pitch and negotiate with buyers, our seasoned team of M&A brokers is ready to help. The Bottom Line. Contact us today.
The rise of founder-led, venture capital-backed companies in recent years has coincided with a surge of companies implementing dual-class share structures in connection with their initialpublicofferings. Best practice: Include a carve out in your transfer provisions.
Although there were 104 initialpublicofferings of biotechnology companies in 2021 that raised nearly $15 billion in funds, 2022 saw only 22 such IPOs collectively raising less than $2 billion. Not to be outdone by their US counterparts, regulators outside the US also are taking more interventionist roles in merger review.
These changes have included increases in the agencies’: Willingness to challenge vertical mergers (e.g., Focus on new potential theories of harm, such as the impact of mergers on labor markets. Distrust of divestiture offers. challenges to vertical mergers and nascent competitor acquisitions).
This approach, combining M&A and initialpublicoffering (IPO) preparations on parallel tracks, allows companies to maximize optionality in an uncertain market. Looking forward, we expect a focus on the sector by the FTC to continue, especially given that perceived high drug prices remain a bipartisan area of concern.
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