Stay informed with the latest trends, events, and legal strategies for the lower middle market.
Industry Insights
Spotlight on M&A Activity in Q4
Corporate mergers and acquisitions are projected to continue rising in 2025, driven by growth in technology and AI. Lower middle market companies ($5-$50 million in revenue) are becoming increasingly attractive targets, especially those in niche or regional markets. This trend opens timely opportunities for businesses with specialized capabilities to leverage their unique market positions as M&A demand expands.
Our Analysis: For companies eyeing M&A opportunities, proactive preparation in compliance and intellectual property can increase deal attractiveness and minimize risks.
Key Legal Updates
Navigating the FTC’s Stance on Non-Competes: Alternatives for the Lower Middle Market
The FTC has recently focused on limiting the use of non-compete agreements. This shift affects lower middle market companies that rely on non-competes to protect proprietary information and maintain competitive advantage.
What It Means for You: To stay compliant, companies should explore legally sound alternatives, such as non-disclosure agreements (NDAs) and non-solicitation clauses. We break down these alternatives and provide guidance on maintaining essential protections without non-competes.
Featured Resources
SAFE Notes and Funding Strategies in 2025
SAFE notes remain popular for early-stage funding, but recent regulatory shifts and market changes suggest companies may want to re-evaluate their use.
Your Guide: We break down the pros and cons of SAFE notes and offer insights on when alternatives, like convertible notes, might be preferable in today’s market.
Additional Resources:
Guide to 83(b) Elections: Read More →
Tax Implications of M&A: Read More →
Quick Financial Snapshot
U.S. Market Outlook
Economic indicators from the Federal Reserve show stable growth and moderate inflation, creating a favorable environment for lower middle market companies considering strategic expansions. Read More →
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