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Thompson Hine LLP, a full-service business law firm with approximately 400 lawyers in 8 offices, was ranked number 1 in the category “Most innovative North American law firms: New working models” by The Financial Times and was 1 of 7 firms shortlisted for The American Lawyer’s inaugural Legal Services Innovation Award. The firm has been recognized by the National Law Journal as a Legal Technology Trailblazer and featured by Bloomberg for its innovative service delivery models, which drive accuracy and predictability. The firm’s commitment to innovation is embodied in Thompson Hine SmartPaTHTM – a smarter way to work – predictable, efficient and aligned with client goals. For more information, please visit ThompsonHine.com and ThompsonHine.com/SmartPaTH.

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In this edition we continue our coverage of the Corporate Transparency Act, with three articles covering the legal implications for a wide range of businesses. We also discuss the sea change in the treatment of college athletes under new NCAA “name, image, and likeness” compensation rules, business certification options for companies interested in pursuing contracts with federal, state or private sector contracting authorities, and the impact of new messaging technologies on government enforcement regimes.

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There are a lot of other topics we could have written about, that have major impacts on our clients’ businesses, finances, and transactional strategies. It is a presidential election year in the United States, wars are raging in various places around the world, and interest rates have recovered from their record lows following the 2008 financial crisis and the COVID-19 pandemic, including the unwinding of unprecedented negative interest rate regimes in several major economies.

That last point certainly has had an outsized impact on our work as corporate transactional and finance lawyers. Generally, we have seen continued strong activity in our M&amp;A and capital markets financing practices over the past several years, during the era of ultralow rates. After a banner year in 2022, followed by a mild downturn in early 2023, especially in more rate-sensitive areas, activity seems to be picking up again as we head further into the presidential year of 2024.

The subjects of interest rates and government monetary policy are deeply complex, and probably not best addressed in this column. It is a truism that the current level of rates reflects the current complex state of the world in 2024.

What is driving this pickup in activity, as interest rates appear set to remain “higher for longer” according to many observers? In historical terms, current rates in the range of 5% are not unusually high. Investors as well as buyers and sellers in the M&amp;A market seem to have adjusted their rate expectations and corresponding valuations to the new interest rate regime. The underlying motives driving transactions remain constant, such as generational ownership transitions, capital demands to support growth, and opportunities presented by exciting new technologies and business models.

Basically, life goes on, as people are getting used to higher rates. Continued higher rates certainly will benefit savers, retirees, pensioners, and others who rely on fixed income returns. They also represent a perhaps welcome sign of a return to normalcy in the financial and capital markets. One thing is certain: The clients and businesses we serve, as always, are finding ways to adapt and thrive in the current environment.

https://admin.thompsonhine.com/wp-content/uploads/2024/03/Business-Law-Update-March-2024.pdf

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<em>This client update may be reproduced, in whole or in part, with the prior permission of Thompson Hine LLP and acknowledgement of its source and copyright. This publication is intended to inform clients about legal matters of current interest. It is not intended as legal advice. Readers should not act upon the information contained in it without professional counsel.</em>

<em>This document may be considered attorney advertising in some jurisdictions.</em>

Business Perspectives: Higher for Longer

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