Corporate Lawyers in Chicago: What’s New

As a corporate lawyer with over 7 years of experience practicing in Chicago, I’m excited to share some of the latest developments that will impact businesses in 2023. From new regulations to emerging trends, staying current is crucial for companies to thrive in our evolving landscape. Read “Corporate Lawyers in Chicago: What’s New” below.

In this article, I’ll provide an insider perspective on key things corporate lawyers like myself are preparing for, so you can position your organization to navigate changes smoothly. With expertise from handling hundreds of clients in industries from tech startups to Fortune 500s, I’ll explain each item in depth along with real-world examples.

My goal is to equip executives, founders, and in-house counsel with actionable intelligence to forge partnerships with outside counsel like my firm for legal strategy and compliance. Let’s dive in!

Hot Startup Sectors Drawing Investor Interest

As a corporate lawyer immersed in Chicago’s thriving startup ecosystem, I’ve noticed particular sectors gaining momentum with venture capitalists and angels recently.

For instance, enterprise software startups addressing supply chain challenges have tremendous tailwinds post-pandemic. I just closed a $3 million seed round for a logistics optimization firm using predictive analytics to greatly reduce shipping costs and delays for manufacturers.

Another area that’s hot is climate tech, which covers a wide spectrum from renewable energy to carbon capture to electric vehicles. I assisted an innovative battery storage provider raise their $5 million Series A to scale production as demand for their patented designs skyrockets.

Even biotech and health tech continue accelerating with no slowdown in sight. One of my long-time clients recently had a 9-figure exit when their precision medicine diagnostics platform was acquired by a large pharma corporation looking to bolster R&D capabilities.

The common thread is investors flocking to novel solutions that leverage technology to drive transformation across traditional industries. For both startups and mature companies, staying on top of these trends can unlock growth opportunities through new partnerships and markets.

My advice is connect with legal counsel following the latest developments across sectors so you can capitalize on emerging areas early. I assemble detailed briefings for clients on rising stars gaining buzz in Chicago’s startup and venture community so we can evaluate prospects together. Getting ahead of the curve is invaluable.

SEC Climate Disclosure Rules Taking Effect

Public companies take note – sweeping new climate disclosure rules from the Securities and Exchange Commission (SEC) will start applying in 2023. This complex regulation has been years in the making and compliance isn’t straightforward.

At a high level, covered firms must report their greenhouse gas emissions, climate risks, and strategies for managing their environmental impact. This spans the entire value chain too – from direct operations to suppliers and distribution channels.

While laudable in intent, practical implementation poses major hurdles. Data collection across Scope 1, 2 and 3 emissions requires advanced tracking many corporations currently lack. Analyzing exposure to physical and transitional climate risks also necessitates sophisticated modeling.

Fortunately, my firm has been gearing up for this scenario since the SEC first floated proposed climate disclosure rules last year. I lead a cross-disciplinary team combining environmental law expertise with capital markets knowledge to help clients assemble compliant filings.

We built a streamlined approach covering:

• Data inventory, tracking, & verification
• Material climate risk analysis
• Policy, target, and adaptation plan development
• Alignment to TCFD and SASB frameworks
• Integration with financial statements

Leveraging partnerships with specialized consultants, we help enterprises collect ESG data, quantify impacts, and craft the mandated climate disclosures to satisfy SEC examiners.

I advise CFOs and general counsel to get ahead of this now, as regulators will scrutinize the first wave of filings. Fines, penalties, and litigation risks make compliance imperative. Partner with qualified legal counsel to navigate the climate disclosure rules.

Antitrust Oversight Adds Considerations for M&A

With antitrust enforcement scrutiny at unprecedented levels, merger & acquisition deals face higher barriers under the Biden administration. Whether pursuing acquisitions or exploring exits, corporate development strategy must account for this intensified regulatory climate.

In 2022, the Federal Trade Commission (FTC) and Department of Justice (DOJ) went on an anti-competition crusade not seen since the monopoly-busting years under Teddy Roosevelt. Oversight spans tech platforms, pharma/biotech, healthcare, manufacturing, and consumer goods.

Just recently, I helped a private equity client salvage an acquisition after FTC intervention. The target manufacturer had market-leading share in a niche industrial component segment. We managed to avoid an injunction by proposing behavioral remedies and partial divestitures to eliminate competitive concerns.

However, deals falling through after months of work due to regulatory challenges create massive value destruction. The FTC nixed Visa’s proposed $5.3 billion takeover of Plaid, an innovative fintech API platform, after months of investigation.

My firm now bakes detailed antitrust analysis into due diligence for both buyers and sellers. We assess concentration levels across relevant product and geographic markets early in the process.

For deals likely to get caught in the crosshairs, I assemble arguments around countervailing factors limiting market power. These encompass supply chain constraints, buyer bargaining leverage, and competitor readiness to expand production.

Getting out ahead of regulatory scrutiny with economic and legal grounds for the deal’s pro-competitive benefits can make or break approvals.

Boards should tap external counsel not just to negotiate deals but to preemptively address antitrust aspects. My extensive case experience with DOJ and FTC merger reviews helps clients proactively troubleshoot.

Rising Shareholder Activism Bringing M&A Pressure

Shareholder activism hit unprecedented levels in 2022, a trend poised to continue this year with major implications for M&A strategy. Agitators like Elliott Management and Starboard Value are forcing companies to consider sales, divestitures, and alternative deal structures.

Activist hedge funds build up stakes in target firms before publicly agitating for strategic moves to boost share prices. Common demands include leadership changes, spin-offs of business units, adjusting capital allocation, and exploring mergers or acquisitions.

These vocal investors have been increasingly successful influencing board decisions and winning proxy battles to install dissident director candidates. Faced with this disruption, management teams often end up on the auction block.

Just recently, I advised a Fortune 500 client on defending against an activist investor proposing to break up the conglomerate. After months of pressure, management ended up acquiring one of the activist’s suggested M&A targets in their space and added an independent board member from the activist’s slate.

With so much dry powder, activists show no signs of letting up. My firm offers comprehensive counsel covering activist response strategy, shareholder communications, proxy contest defense, and deal execution.

Boards should start preparing now with vulnerability assessments and contingency planning. Having external advisors with activist situation experience is key to driving favorable outcomes.

Conclusion

I hope this overview from my insider perspective as a corporate lawyer in Chicago provides actionable insights on major developments for 2023. From climate risk to antitrust scrutiny to shareholder activism, the regulatory and compliance terrain continues growing more complex for enterprises.

By getting out in front of these issues early and selecting qualified outside counsel, companies can adapt their legal strategy and operations to manage change. Please reach out if you have any other questions! I welcome the chance to offer guidance on how my firm can partner with you.