As you know, I have long advocated the value of independent directors in the middle market. They bring perspective and diversity to family businesses in particular, and more subtly, help keep the conversation focused on business issues rather than emotional ones.
The SEC is now proposing for comment, landmark changes that will allow small groups of shareholders to force the addition of independent directors. (more…)
Wow! According to a NY Times report, a recent study at the University of Maryland found that business plans really don't matter! Their study found that VC's pay little attention…
For almost two years, I have been writing a regular column for the North Bay Business Journal, a publication of the New York Times, a weekly business newspaper which covers the North Bay area of San Francisco – from the Golden Gate bridge north, including the Wine Country of Sonoma and Napa counties.
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Article References
Article published – April 13, 2009
by Lary Kirchenbauer
I can’t help myself this week. The mounting encroachment by the federal government across the terrain of American enterprise is very troubling, so I hope you’ll join me as we take a slight detour to address a few of these issues.
I understand the outrage over the egregious pay packages, bailout bonuses and inscrutable investment products of many of the nations’ major financial institutions. I also understand the unsettling power of the lender of last resort. Yet, to ignore the federal government’s track record is like overlooking a cliff when climbing the Matterhorn. Two recent and provocative reports serve as vivid reminders of the federal government’s woeful track record and ineptitude at managing large-scale enterprises. (more…)
I overlooked posting this article earlier, entitled After the Fall. It was written by Michael Lewis of Liar's Poker fame and published in the Dec/Jan 09 issue of Portfolio magazine.…
Impressing your bank less important than being able to hit targetsThe Scavenger’s Daughter? Might be the name of a lost Dickens novel … or an indulgent misnomer for a the infamous rack that not only stretched but crushed its victims during the reign of King Henry VIII.
Thumbscrews, pilliwinks, breaks and the tormento de toca were other methods used to punish those that broke their “covenant” with the King.
Fortunately, those punishments are relegated to history’s ash heap … at least I’m pretty sure that banks aren’t using any of these default provisions.
Compliance with financial covenants, however, has never been more important. Today, banks have an arsenal of covenant choices that are used as an early warning system to alert participants to potential problems that may jeopardize their financial well-being.
It’s important to recall that covenants are based upon (more…)
