Investment is a driving force behind economic growth, but in today’s market, securing funding has become more challenging than ever. Banks have tightened their lending criteria, making traditional loans increasingly unattainable. In response, alternative funding sources—such as angel investment and private lending—are stepping in to fill the gap. But with this shift comes a critical question: how well is this sector regulated?
Issue 49 - September 2024
The Trump/Harris showdown last week was pure theatre and no doubt is a prelude for much more debate to follow. It seems to me that Kamala Harris brings a dynamic to the election that was previously missing (youth!); some fascinating watching to come in this space.
Issue 48 - June 2024
Topical events over the last month have been plentiful; the Budget of course has headlined, and so has the state of the economy, the impact of high interest rates on it and the collapse of iconic Smith & Caughey.
Issue 46 - November 2023
It feels like the end of the year has been overtaken by two fabulous world cups and an election. Some lovely weather has been a Godsend too.
Nonetheless there continues to be plenty of activity, most of it positive – not so if you are exposed to prevailing high interest rates, or having to compete in the supermarket business! As usual, what follows is a snapshot of items that have crossed my desk in the last 2 or 3 months (hence topical). I hope you find them of interest.
Issue 45 - August 2023
Aren’t political wavering fascinating. First, David Parker commissions the high net wealth information gathering request as a platform to support a capital gains tax. Then the Greens Party press for this to be extended to a wealth tax. Chris Hipkins evinces his concern at voter reaction by dismissing both a capital gains tax and a wealth tax. Grant Robertson and James Shaw are left fuming and David Parker asks to be removed as Minister of Revenue. Fascinating.
Issue 43 - November 2022
Yesterday, the Reserve Bank increased the official cash rate (OCR) by 75 points in what was a record individual rate hike. This pushes the OCR up to 4.25% and is a response to continued high inflation (7.3% in Q2 and 7.2% in Q3)…
Issue 37 - March 2021
The Trusts Act has now passed into law, the Court of Appeal decision in the Mainzeal (Jenny Shipley director’s liability case) is now imminent, the Supreme Court has granted leave to appeal for Frucor in its avoidance case and Eric Watson has announced his intention to write a book….
Company Restructuring Options
Motivation for company restructuring might be to survive, revive or thrive. The focus in this article is on restructuring in order to survive…
Corporate Liquidations – Are you Exposed?
Suppliers to companies that fall into liquidation are exposed to a liquidator clawing back amounts paid to them…
Buying a Business out of Receivership
Buying a business out of receivership involves vastly different features to customary business purchases. This article discusses the issues for a purchaser that are unique to a target company that is in receivership…
Protections for Owner Operated Companies
There are steps open to you as owner of a trading company to protect your investment in the company…
Capital Raising Steps
Capital raising for privately owned companies necessarily carries a tension between the amount of cash needed and the cost of obtaining it. The greater the equity in the company that is conceded, the greater the cost…
Supplying a Company that is in Receivership
What should you do, as a supplier of goods or services where your customer is placed into receivership? How does the receivership affect a landlord which has granted a lease to a company that has gone into receivership…
Strategies for Companies in Insolvency
The need to deal with creditors
The number one priority for companies with viable businesses that are unable to meet their debts is to deal with their creditors…
Closely Held Companies
In my last newsletter I commented on proposed changes to the rules for look through companies (LTCs).
Companies and Limited Partnerships Rule Changes
The requirements for New Zealand resident directors of all companies incorporated here have now come into force. so have the strengthened identification requirements that require directors to disclose their date and place of birth.
Purchase Price Adjustments
Share sale agreements invariably provide for an agreed price that presupposes a fixed working capital balance at settlement. That balance is often agreed to be zero which will require the purchaser itself to ensure funding of working capital is available immediately after settlement.
Earn Outs
These are a commonly used vehicle for managing the respective interests and expectations of vendor and purchaser. Conceptually they are straight forward; practically they are anything but.
Restructuring Issues
Groups of companies often strive for simplicity through the disposal of unwanted companies. How is that done?
Shareholder Disputes - Managing exits by a shareholder
Take a private company setting, say 3 individual sharheolders. One of the shareholders has begun to cause trouble. The other two shareholders want him or her gone. What can be done?