Facing a stagnant market, retailers of consumer staples have turned to aggressive discounts to drive growth. According to the Wall Street Journal, more than 50% of consumers’ purchases include markdowns! More Discounts is NOT More Growth Businesses in non-growth or declining growth markets understandably must find new ways to capture market share. However, offering more …
Category: M&A and External Growth
Be the preferred buyer – Have your ducks in a row
Your ability and willingness to close a transaction can help position you as a preferred buyer. Just like in buying a house, sellers look favorably upon buyers for whom financing is not a contingency of closing. If you already have financing secured not only do you have the willingness to close a transaction quickly, you …
Tax Inversions: Foreign Acquisitions for a Lower Tax Rate
As tax day approaches in the U.S. I thought it’d be appropriate to discuss a business tax trend. As you may be with your own return, U.S. corporations are looking for more tax advantages. Many are seeking tax inversions, where they reincorporate in a new country with a lower tax rate as a result of …
Cost Synergies Ill-Suited for Long-Term Growth for Men’s Wearhouse
After battling for six months, Men’s Wearhouse and Jos. A. Bank finally came to an acquisition agreement on March 11 for $1.8 billion, forming the country’s fourth-largest men’s retailer. Men’s Wearhouse expects cost synergies of $100-150 million over the next three years to result from the deal, including the benefit of better purchasing power. While …
Credit Union Trends: Non-Interest Income Infographic
Non-interest income is a hot topic in the credit union industry. Check out Capstone’s infographic on non-interest income below. Click on the image for a closer look. How can you generate more non-interest income? Many credit unions and CUSOs are turning to external growth and mergers and acquisitions to generate more non-interest income. Find …
Finding the Best Acquisition Opportunities
“The best opportunities are the ones we’re pursuing and not the other way around.” This comment in The Wall Street Journal from Smadar Levi, CFO of MyHeritage.com, is one I wholeheartedly agree with. She is quoted in an article about the growing number of startups seeking to be acquired. With fewer financing options available to …
New Trends in Mergers and Acquisitions Terms and Tactics
When it comes to M&A, dealmakers should be aware of several new trends in 2014. A recent webinar by The Deal, “Trends in M&A Deal Terms and Tactics,” focuses on two such trends from Delaware courts that may affect acquirers in all jurisdictions. Multi-Jurisdictional Litigation The first development is preventing multi-jurisdictional litigation. The webinar panel …
How to Get Acquired: Top 10 Tips for Selling Your Business
M&A can be a powerful tool for transforming your business, but it’s important to find the right partner who is aligned with your strategy in order to accomplish your goals. For sellers, oftentimes acquisition means saying goodbye to a business you’ve built from the ground up. You don’t want to sell your life’s work to …
When to Mention Acquisition to an Owner
When do you let an owner of a privately-held not-for-sale company know you are interested in acquisition? While, I’ve mentioned that an owner will not sell their company over the phone, this doesn’t mean you should hide your interest in acquisition. You should introduce acquisition at the beginning of the process. In your first call …
Could M&A Slow Down?
A minority of investors have expressed concerns that midmarket activity may actually slow down in 2014, compared with 2013 activity levels. Growth in the middle market may plateau for a few reasons all of which hinge on uncertainty in the economy including sequestration and the ongoing open-discussion over the U.S. debt ceiling. Health-care reform costs …
