The current government shutdown is beginning to ripple through capital markets, creating uncertainty for companies and their legal advisors. “For smaller public companies, unless you have your registration statement declared effective before the doors closed, you are kind of left in the cold until the government reopens,” said Margaret K. Rhoda, securities and capital markets partner, in an interview with The National Law Journal. While the immediate impact has been limited, capital markets attorneys caution that prolonged disruptions could slow deal activity, delay capital raising, and heighten uncertainty across the market.
While some IPOs have managed to close just in time, others are facing delays and disruptions as the SEC’s ability to review and approve filings grinds to a halt. For law firms and their clients—particularly smaller public companies—the longer the shutdown continues, the greater the potential impact on deal activity, capital raising, and routine compliance.
To read the full interview on The National Law Journal‘s website, click here.