The Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) which amends the criteria that define an investment company, clarifies the measurement guidance, and requires new disclosures. The ASU arose from collaboration between FASB and the International Accounting Standards Board (IASB) to develop a consistent approach to recognizing…

Uptick in Dividend Recaps – Reduce the Risk Current interest rates remain at historically low levels, even for already leveraged companies and firms with higher-risk credit profiles. This has led to record amounts of recent debt financing activity. An increasing number of borrowers are feeding off investor demand for higher…

A fairness opinion is an effective, often necessary, risk management tool that determines whether the terms of a transaction are fair to stakeholders from a financial point of view. In significant change of control or capital transactions, obtaining a fairness opinion facilitates the decision-making process. The purpose of the fairness…

SEC Expands Police Squad – Fund Violations Surpass 50% The Securities and Exchange Commission (SEC), in connection with the Dodd-Frank Act, has a dedicated team for the examination of private equity and hedge funds, and is now pushing to increase its 2015 budget and add up to 316 staff to…

If MOM says NO, the deal don't go! Corporate transactions are on the rise, and increased activity results in an increase in shareholder challenges. A recent WSJ article stated that 94% of U.S. public company deals were challenged by shareholders last year versus 44% in 2007. Lawsuits are typically directed…