By Staff Reporters
SPONSOR: http://www.MARCINKOAssociates.com
***
***
The markets are down again and stocks continued their September slump with tech companies getting hit especially hard as investors fretted about another possible Fed rate hike because of data showing prices for manufacturing and services trending upward. It was a mixed bag for the meme stock faithful, with AMC hitting an all-time low after releasing a plan to sell new shares and GameStop rising after-hours thanks to better-than-expected sales last quarter.
MEME: https://medicalexecutivepost.com/2021/10/23/what-are-meme-stocks/
***
This all may demonstrate that private companies looking to fund growth in this high-interest rate environment are facing a tough time raising capital amidst falling valuations, according to a new Deloitte survey.
The problem is particularly acute for smaller companies. Many of the companies challenged by capital raising saw themselves putting out the “For Sale” sign within the next six months, which could lead to an M&A boom later this year.
CITE: https://www.r2library.com/Resource/Title/0826102549
“The No. 1 largest factor that people saw as a challenge or a barrier was a decrease in valuations of their business,” Wolfe Tone, vice chair and US and Global Deloitte Private leader, told CFO Brew. “Clearly, increasing interest rates and pricing was closely behind that. Liquidity challenges not far behind that.”
Private companies have been looking to raise capital to fund a range of growth initiatives; meeting talent needs and expanding tech capabilities are at the top of the list, Tone said. Not far behind was “increasing productivity and improving cost structures.”
VC FUNDING: https://marcinkoassociates.com/fmv-appraisals/
COMMENTS APPRECIATED
Thank You
***
Filed under: "Ask-an-Advisor", Breaking News, Career Development, Experts Invited, Financial Planning, Funding Basics, Health Economics, iMBA, Inc., Investing | Tagged: AMC, CFO Brew, david marcinko, Deloitte, fed, FOMC, GameStop, Global Deloitte, high interest rates, interest rates, IPO, IRS, M&A, Marcinko, Marcinko Associates, MEME stocks, Private Equity, VC, Venture Capital, Wolfe Tone | 1 Comment »