PRIVATE COMPANIES: Raising Capital is Hard ~ No Very Tough!

Posted on October 12, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

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: , , , , , , , , , , , , , , , , , , , | 1 Comment »

SEC: New Cyber-Security Regulations

Posted on October 1, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

***

***

The SEC’s new cybersecurity regulations went into effect last week. Most companies are “largely ready” to comply, Matt Gorham, senior managing director and leader of PwC’s Cyber & Privacy Innovation Institute, told CFO Brew, “but that doesn’t mean there isn’t work to do.”

As their companies’ finance leaders, CFOs are instrumental in determining whether a cybersecurity incident is material, but they have other roles to play as well. Gorham shared his advice for how CFOs can help their organizations comply with the new regs. Now, aAs a reminder, the regulations consist of what Gorham refers to as three “buckets.” Companies that file with the SEC are required to:

  • Declare any material cybersecurity incidents to the SEC on Item 1.05 of Form 8-K within four business days of determining materiality
  • Disclose information about their cyber risk management and strategy on a new section of the 10-K called Item 1C
  • Disclose information about their boards’ and management’s role in overseeing cybersecurity risk

The first two “buckets,” Gorham said, will likely require the most work to comply with.

COMMENTS APPRECIATED

Thank You

***

***

***

Filed under: "Advisors Only", "Ask-an-Advisor", Breaking News, Ethics, Events-Planner, Experts Invited, Financial Planning, Funding Basics, Information Technology, Investing | Tagged: , , , , , , | Leave a comment »

U.S. INCOME: Falling

Posted on September 18, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

For the third straight year, US incomes fell, according to new Census Bureau data. In 2022, the median household income fell to $74,580, adjusted for inflation. That’s a 2.3% decline from 2021’s median estimate of $76,330, according to the Census Bureau. And the latest figures mark a 4.7% drop from a 2019 peak of $78,250.

Meanwhile, earnings for both part-time and full-time workers fell 2.2% between 2021 and 2022. For full-time, year-round workers, median earnings dropped 1.3% in 2022.

One small bright spot: The Gini index, a measure of income inequality, modestly improved. The income gap between high- and low-income households decreased by 1.2% between 2021 and 2022, marking the first annual decrease since 2007.

GINI INDEX: https://medicalexecutivepost.com/2022/09/24/what-is-the-gini-index/

In all, though, the latest Census data provides a snapshot of American households’ economic troubles, and the abundance of cash-strapped workers has created new challenges for CFOs.

***

COMMENTS APPRECIATED

Thank You

***

***

Filed under: "Ask-an-Advisor", Accounting, Breaking News, Events-Planner, Investing, Taxation | Tagged: , , , , , , | Leave a comment »