Week in Review: Nasdaq, Financing, and ERM

Apparently Facebook and squirrels aren’t the only things that can bring down the US stock market. Yesterday, trading on the Nasdaq stopped for more than three hours due to technological glitches. Although there seem to be few long-term consequences to the blackout, the SEC believes the hiccup was, “serious and should reinforce our collective commitment to addressing technological vulnerabilities of exchanges and other market participants.”

Meanwhile, in the private capital markets, JustFab and ShoeDazzle merge, financing remains difficult for small businesses, and the PE-pension fund relationship may evolve.

An Improving Economy, But Financing is a Challenge: The National Small Business Association released a report this week announcing that small business owners are optimistic. Although 35% see the economy as healthier than it was 12 months ago, a great deal of uncertainty lingers for financing options. As small banks merge, it could open an opportunity for alternative financiers.

Why Enterprise Risk Management is Integral to Firms: The SEC has a new buzzword: Enterprise Risk Management. It might be worthwhile to study up, as compliance exams begin to highlight the idea. In this video, a former SEC attorney and MDs of New Mountain Capital discuss the ideas and principles of ERM.

Avoid the Biggest Deal Killer – Time: Time heals all wounds — but not all deals. In reality, “When selling a business, time is not your friend,” explains Rose Stabler. In this business owner-focused article, she explains how to determine the best time to exit a business. Tips include knowing the value of the business, having a good reason to sell, and ensuring that your team is ready.

Investments:

• JustFab and ShoeDazzle Merge
• Zillow Buys StreetEasy for $50M
• Dorel Acquired Caloi
• Advertek Printing Acquired Assets of Peel Graphics, Inc
• Lexmark International Acquires Saperion AG for $72M
• Telestream Acquires Captioning Company CPC
• Highlander Partners Acquires Juice Tyme
• Baidu Pays $160M for Stake in Nuomi
• Revolution Lighting Acquires Relume Technologies

Opinions:

• Broadening the Appeal of Private Equity for Pension Plans
• Middle Market M&A Deals Fall to Lowest Level Since 1995
• Private Equity: Tax Attack
• Why You Shouldn’t Send Your Business Plan to Investors
• Did the Recession Help Your Business?