Opportunity and Risk Reduction: The Startup Two-Step

Guest post by Paul A. Jones, Of Counsel, Michael Best & Friedrich LLP

Most entrepreneurs really enjoy talking about the prodigious opportunity at the end of their startup’s rainbow. The reward side of the high-risk/reward equation. And that’s good, to a point. The point at which the prospective investor buys into the reality of the opportunity and the entrepreneur’s team for capturing it. Unfortunately, it’s not a point at which most prospective investors are willing to write a check.

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SEC Proposes Improvements to Acquired Business Financial Statement Requirements

Guest post by attorneys at Shearman & Sterling LLP

On May 3, 2019, the SEC proposed for public comment amendments to its rules related to the financial statements required to be disclosed by SEC reporting companies or in IPOs in connection with an acquisition or disposal of a business. These proposed rule changes are intended to improve the information that investors receive regarding the acquisition and disposition of businesses, to facilitate more timely access to capital and to reduce complexity and compliance costs.

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Yet Another Proposal to Require Disclosure of Board’s Cyber Expertise

Guest post by Stephanie Teplin and Craig A. Newman from Patterson Belknap Webb & Tyler LLP

Before investing in a company, would you want to know whether the board of directors had cybersecurity expertise?

A bipartisan group of senators have proposed a bill, Senate Bill 592, that would require every public company to disclose the cybersecurity background of its directors, and, if none exists, explain why the company doesn’t believe it is necessary.

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