The Five Signs of Economic Recovery

The world's developed economies may be set to emerge from several months of slowdown, led by the U.S. and Japan, according to the Organization for Economic Cooperation and Development. The Paris-based think tank said on Monday that its leading indicator of economic activity in its 34 member nations rose to 100.4 in December from 100.2 in November—the first increase in the measure since February 2011. That's great for a global view, but how can you tell if things are getting better in Maryland?

Mark Jensen, a partner at Bowie & Jensen, a leading business law firm's, transactional department. He has received numerous legal awards and most recently was named to SmartCEO's legal elite. He focuses his practice on the representation of privately held companies of all sizes, drawing on his personal experience and professional training to help his clients identify goals and develop strategies and tactics to achieve them.

"While these trends are purely anecdotal and based upon our regional practice with privately held companies, professionals and entrepreneurs, they do appear to be consistent with some of the national economic indicators, Mr. Jensen said. "Some of the pressure is gone, the fear is subsiding and business is getting just a bit easier."

Mr. Jensen says there are five clear signs of economic recovery that include:

1.     COMMERCIAL LENDING:

After a nearly three year drought, we have closed more traditional commercial loans in the last three months than we have in the previous thirty six months.  The terms are a bit more conservative, but they resemble pre-recession loans.  Money is actually being lent to people and businesses that need it for expansion and lines of credit.

2.     COMMERCIAL FORECLOSURES AND TROUBLED LOANS:

Beginning in the fall of 2008, Commercial Foreclosures and Troubled Loans ramped up to be a significant percentage of our practice.  We have only two that are still unresolved and have not been engaged to work on a new foreclosure or Troubled Loan in over two quarters.

3.     MERGERS AND ACQUISITIONS:

This practice area ground to a halt in the beginning of the great recession.  Starting in the end of 2009 we saw a relatively small level of activity virtually all driven by distress: a business on the ropes forced to do a deal or close up.  In the last three months we have seen a more traditional deal flow of arm’s length transactions: willing buyers and willing sellers working on a deal.

4.     COMMERICAL LEASING:

Since November, 2011 we have negotiated several Commercial Leases for clients who are moving to upgraded space because they want to and because they can.  This following on long periods of no commercial lease work, punctuated by distress moves to smaller and cheaper space.  Tenants are hiring interior designers again.

5.     EMPLOYMENT

From a steady flow of Separation Agreements for terminated employees we have recently began to see a surge in Employment Agreements for newly hired mid and senior level employees.

Mark Jensen is a close friend of ours. You can reach him at jensen@bowie-jensen.com