Recent corporate earnings announcements from companies such as General Electric (47% decline in Q4 earnings) and State Street ($800 million in earnings charges in Q4, and $9.1 billion in unrealized losses on its books) have roiled the markets and helped usher in a return of the market volatility that peaked in late November...

Economic uncertainty continues to rule the day, with the continuing market volatility and last weeks sell-off dropping major indices to five-year lows. The markets are expected to continue to fall, due to ongoing credit concerns and the anxiety surrounding the auto industry and broader economy...

In our 22 years of experience advising middle market companies, we have found that in times of financial distress and market dislocation, business leaders are often too slow to recognize a trend, and therefore too slow to make the critical changes that are necessary to avoid losses. Such hesitation is natural, especially for entrepreneurs. But there is also a false sense of security that many executives and board members share, that stems from a common misconception of fiduciary duty. Fiduciaries generally understand their duty as “generating value for shareholders”, which is only part of the equation...

With the U.S. economy heading in the wrong direction and the equity markets in disarray, Mirus considers in this issue how middle-market companies should be approaching mergers and acquisitions. This month we will examine how sellers can expect to fare in the current market. We’ll also discuss why it is that healthy middle-market companies and their shareholders — many of whom may have been planning for an exit — may instead want to consider making an acquisition in the next 12 months...

There is little doubt that we are in unprecedented times. The complicated web of mortgage backed securities and collateralized debt obligations has weaved its way throughout the global financial markets and the underlying economy...