The crisis around Greece and the Euro seems to have subsided--for the moment.  The European Central Bank has flooded the European financial system with liquidity using the Long-Term Refinancing Operation (LTRO), yet another form of monetary easing.  Financial markets seem to be recovering nicely.

The European Private Equity & Venture Capital Association (EVCA)(www.evca.eu) has recently published a special report providing an excellent statistical snapshot of the private equity and venture capital industry as of 2010.   It provides a detailed breakdown on sources of capital raised, investment activity, investment per sector and per country, etc. 

Last week I introduced the owners of a Hungarian company to the owners of a Croatian company that they were considering acquiring.  They talked for several hours about their respective industries in each country, and the Hungarian company was shocked to learn about the muscularity of some of its Croatian competitors. 

It seemed that the snow would all just melt and spring might start, but this was an illusion. Snow again began to fall and temperatures dropped, raising questions whether the events at the outset of this year could happen again and whether my building is protected from too thick a layer of snow collecting on the roof, writes Santa Selga, Associate of SORAINEN, and Eva Berlaus, Partner of SORAINEN.

The Supreme Court rendered an interpretation, which favours those creditors who hold judicial mortgages established for their benefit, writes Tarmo Repp, Tarmo Repp, attorney-at-law of Law Office Eversheds Ots & Co.

For most business owners, this is an absurd question.  “Of course I am, I created the business!”  But the fact that you have paternity rights does not necessarily make you the best parent!

BBN asked Les Nemethy from Euro-Phoenix Financial Advisors Ltd on how a business owner or manager should choose what kind of insurance to buy and how might these insurance products help manage the risks in your business? 

The Estonian Parliament is currently proceeding the Language Act draft legislation, which will regulate the use of Estonian and foreign languages in everyday administration and communication, delimit the public and official use of language and specify the use of language on provision of goods and services. BBN asked Kerttu Sarapuu, lawyers of Hedman Partners Law Office, to explain what may come.

Business owners often think that there is no equity capital available to them, yet there is far more money available in private equity coffers than quality projects to satisfy them.  How can we explain this anomaly? 

Les Nemethy from Euro-Phoenix writes in his blog for BBN that great care must be taken when designing a bonus system, so as to avoid the seemingly perverse effects that may actually destroy company value. 

Companies are typically valued based on projected future cash flow or various multiples (e.g. of revenues, cash flow, etc.).  However, at some point in virtually every transaction, an investor will inevitably ask the seller for a written copy of the company’s strategy.  It is surprising how often the answer is that no such strategy document exists.  Does this matter?  I would argue most emphatically that, in most cases, the answer is “yes”. 

By using a case study from HungaryLes Nemethy, CEO of Euro-Phoenix Financial Advisors Ltd., writes on how taxation influences the company's value.

On January 1, 2011 a new Traffic Act will come into force that will combine provisions of the Traffic Act and the Traffic Code determined by the Estonian government which are regulating Estonian road traffic at the present day. BBN asked Dmitri Tšimpoaka and Merlin Salvik from Hedman Partners Law Office to give a brief overview of the 15 most important changes that new Traffic Act will bring.

In a matter of weeks, the euro will become the official legal tender in Estonia. This means that from January 1, 2011 undertakings will also be required to keep their accounts in euros.

As the Warsaw Stock Exchange (WSE) is currently working towards going public, it is worth reflecting on its pre-eminence in the Central European corporate finance world.

In large procurement tenders, construction projects, as well as in other transactions involving significant sums, a guarantee is often required. In these cases a third party (most often a bank) guarantees another person's - the debtor's - obligations and in case of non-fulfilment of these obligations the third party undertakes to pay the beneficiary of the guarantee. In the midst of summer work, many may have missed the coming into force of the new ICC Uniform Rules for Demand Guarantees 758 on 1 July (“URDG 758”).

BBN asked Heili Haabu, attorney at law of Luiga Mody Hääl Borenius, to explain what businessmen who plan to set up a new company from the start of next year need to keep in mind.

Most small to mid-sized businesses have no need for a holding company.  It may be sufficient for the company owner(s) to personally own shares or a quota directly in the company in question.  This article will look at a number of instances where a holding company might nevertheless be advisable. 

Several entrepreneurs find today that their current undertakings need to be merged and their businesses reorganised. Karin Madisson, partner of law firm SORAINEN, and Karl J. Paadam, an associate, cast light on what are the important aspects to consider in mergers.

This article first discusses some of the reasons for using a virtual data room, followed by its disadvantages in comparison to a physical data room.  I conclude with some comments on which type of data room might be more appropriate in different circumstances.