Lower Middle Market Deals - Volume and Debt Ratios Down, Valuations Stable
by David Wolf
The number of transactions at the lower end of the middle market (under $25 million in transaction value) and valuations fell in the second half of 2008 with volumes off sharply. Interestingly, for Private Equity transactions, the credit crisis led to higher equity contributions rather than lower valuations. Read on to see the numbers.
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Directors' Duties When Selling the Company in a Down Market
Two Recent Delaware Supreme Court Cases Provide Guidance for Directors and Officers Evaluating a Corporate Sale or Restructuring
by Dimitry Herman
Corporate directors, particularly venture capital investors, often have to deal with conflicts of interest that arise between their position representing particular stockholders and their obligation to act in the best interest of the company and all stockholders. These conflicts are even more pronounced when selling or refinancing a company in a down market. Dimitry Herman looks at two recent decisions by the Delaware Supreme Court, each reversing the Chancery Court's earlier rulings, that provide new guidance in this area.
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Tax Issues for Investors in Distressed Debt
Beware of Unexpected Tax Consequences for Both Buyer and Issuer
by Peter Elias
Due to the current state of the credit and bond markets, investors and companies see the opportunity for quick gains by buying distressed company debt. However, the tax consequences associated with these types of transactions are very complex and often counterintuitive. In this article, Peter Elias highlights some of the more significant tax issues that arise in connection with these types of market transactions.
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About Us
The Mercator Group offers Merger & Acquisition, consulting and implementation services to enhance value. We help businesses and non profit organizations develop and implement strategies and tactics to achieve their objectives.
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