Considerations Before Your Next Equity Offering

Law360, New York (February 5, 2014, 2:16 PM EST) -- Many companies provide annual earnings guidance and quarterly updates to the analyst and investor communities. Guidance is also frequently updated during industry conferences and in nondeal roadshows. A failure to meet the market’s earnings expectations can negatively impact management’s credibility and, in turn, the price of the company’s common stock.

The importance of earnings guidance is heightened during an equity offering when a company is actively soliciting investors. Based on our experiences, decisions with respect to disclosing, updating or discussing earnings guidance are among the most...
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