The JOBS Act and its impact on middle-market and emerging growth companies

By David Cole, Partner, Holland & Knight

On April 5, 2012, President Obama signed into law the Jumpstart Our Business Startups Act (the JOBS Act) which includes a number of changes to fundamental U.S. federal securities law policies. The JOBS Act will create fundamental changes in the way some companies raise capital. Here are some of the things companies need to know about the JOBS Act and the way it will affect their business.

Under the new Act, middle-market company CEOs, CFOs and their investment bankers are afforded a spectrum of investment opportunities to consider including:

  • raising small amounts of money using the Internet
  • staying a private company longer and raising money in private placements from sophisticated investors
  • raising significant sums of money, up to $50 million, in a 12-month period in a new Regulation A+ hybrid offering mechanism
  • tapping the U.S. capital markets in an initial public offering sooner
  • Read the Full Post

May 17, 2012 Posted Under: Business Best Practices, Capital Growth   Read More

ACG National Capital welcomes new board members for 2012

The National Capital Chapter of the Association for Corporate Growth (ACG) elects new members to its Board of Directors every year. These board members are essential for the organization; guiding the chapter’s business and affairs and helping set its direction for the coming year.

The chapter’s board is comprised of volunteers that represent the disparate industries and markets that make up ACG’s membership. During their four- year term, these individuals will work to establish guidelines and policies that will enable the chapter to fulfill its mission of driving middle-market corporate growth. They also provide financial oversight and develop action plans and programs to grow membership and increase the overall value of the organization.

The eight new members announced for inclusion on the ACG National Capital Board of Directors includes some of the most distinguished business leaders in the region. They include:

May 16, 2012 Posted Under: ACG National Capital News   Read More

Budget cuts to drive M&A activity in the government contracting market

With talk of reducing federal expenditures by $1.2 trillion over the next decade, half of which are geared at defense cuts, government contractors are seeking to shift their priorities in order to remain competitive in the public sector. When similar budget cuts have occurred in the past, there was an increase in M&A activity as larger companies acquired smaller firms in the government contracting market.

This was just one of the trends that a panel of experts discussed in a recent article in Financier Worldwide.

In my previous experience in this type of market, budget cuts simply mean it’s more cut throat out there for companies. The battle for available budget dollars becomes more heated and having key capabilities in high priority areas will be vital for companies moving forward.

It’s for this reason that M&A activity actually increases in the government contracting market when federal spending is slashed.… Read the Full Post

May 10, 2012 Posted Under: Mergers & Acquisitions   Read More