For decades, authorities and experts have tried restricting excessive borrowing by private equity investors, since it’s been repeatedly shown that they leave lots of bankruptcies in their wake. And these abuses continue because private equity looting fee structures result in general partners making out handsomely whether or not the business does well. In 1987 (no typo), the Treasury proposed limiting the deduction of interest on highly leveraged transactions. That idea went by the wayside thanks to the 1987 crash. Other proposals to restrict debt levels have similarly not gone anywhere. Yet now an important ruling looks set to deliver where regulators and legislators have failed.
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We’re taught at an early age to never sign a blank cheque. Today, blank-cheque companies, or what are called special purpose acquisition companies, are driving the red-hot IPO market in the U.S.
SPACs have been around for a long time but 2020 was their coming out party. They raised US$82 billion, well above the 2019 number (US$13 billion), and almost as much as conventional IPOs.
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Try refreshing your browser, or When it comes to SPAC investing, the house always wins. The public, not so much Back to video
SPACs are mostly a U.S. phenomenon whereby high-profile investment managers, rock star executives and actual rock stars raise money based on reputation alone. They create a shell company with the intention of using the cash to buy a business.
Betting on âblank checkâ companies
Thimble Point joins growing ranks of so-called SPACs that go public despite owning nothing
By Scott Kirsner Globe Correspondent,Updated February 18, 2021, 3:38 p.m.
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The Nasdaq exchange has a presence in New York s Times Square via its digital billboard.HIROKO MASUIKE/New York Times
These are strange days for the stock market. You can take a company public without actually having a business, customers, or revenue. And if youâre Woody Benson, you can do it from the master bathroom of your home in Bonita Bay, Fla., showing slides over Zoom to prospective investors.
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email Why Biden Should Expand OPM’s Role
Changes instituted by the Trump administration reflect an outdated and discredited “do as you’re told” approach to management.
Workforce Management Consultant
President-elect Biden brings a radical shift in the management philosophy that should guide workforce management now and into the future: “The federal government should serve as a role model for employers to treat their workers fairly.” He has stated, “Dedicated public servants are the lifeblood of democracy.”
His statements are important. Leadership is essential for an organization’s success. It builds employee commitment. Ideally the individuals appointed to key positions in the Biden administration will share the president’s philosophy.
Dec 23 2020
FNArena s dedicated ESG Focus news section zooms in on matters Environmental, Social & Governance (ESG) that are increasingly guiding investors preferences and decisions globally. For more news updates, past and future:
It s all hands on deck heading into the fourth industrial revolution, China is in the game, and companies will need the best of the best to survive: well informed and well-heeled ESG investors know it; and sovereign nations are legislating
– ESG funds looking for diversity
– All hands on deck for the fourth industrial revolution
– Legislation rising for boards and senior management
– Rivals gaining jump on sleepy Australia
By Sarah Mills