Often an improving economy and renewed growth put more stress on corporate balance sheets than the recession itself. During a business decline, liquidity is generated through the impact of lower sales which leads to lower receivables outstanding, and a net generation of cash (after some lag). Similarly, as inventories are worked off, the need for …
Articles
The Rollup Option: Distributor Deals Mark a Consolidating Industry
“When you come to a fork in the road, take it.” That nonsensical advice has been attributed to Yogi Berra, the famed New York Yankees catcher of yore. Whether Yogi ever said that is questionable. But the nearly 1,400 large lube and fuel jobbers in the U.S. are indeed approaching a fork in the road …
Where to Go When the Bank Says No
(The characters in this story are fictional, but unfortunately, the experience described below is all too real.)
For more than twenty years, Al Rodriguez lived the American Dream. Recently, his dream became a nightmare. Al and his family had immigrated as political refugees to the United States from Nicaragua in the early 1980’s following the …
All About AIM: London Stock Exchange’s Alternative Investment Market
London Stock Exchange’s Alternative Investment Market (AIM) has been around since 1995, but until a couple of years ago virtually was unknown in the US. Now, AIM is beginning to attract serious attention from US companies, with a record number of American firms considering as an alternative the AIM market as a means of raising …
Your Corporate Development Strategy: Five Questions to Ask When Selecting an Investment Banking Partner
Most corporate executives fully understand the “strategic planning” process that projects the enterprise’s corporate objectives and initiatives over a five to seven year period. Many corporate management teams employ a strategic planning firm to facilitate the planning process which levels the playing field and results in the most objective and targeted strategic plan.
Corporate owners …
“AIM” High: US Firms With Market Caps of $10-100 Million Can Benefit by Raising Capital in London
Virtually unknown in the US until a couple of years ago, the Alternative Investment Market (AIM), the junior market of the London Stock Exchange, is starting to attract serious attention from US companies looking to raise capital.
As of year-end 2005, about 1,400 companies were listed on AIM. Of these, 220 were non-UK companies from …
Closing the Gap between Valuation and Proceeds: What Every Business Owner Needs to Know
By G. Stanley Cutter, Partner, FOCUS Enterprises, Inc.
Many business owners mistakenly assume that they will receive the “value” of their firm in cash as proceeds during a sale. This expectation is further compounded if the business owner has received a formal valuation from a valuation professional.
While any experienced M&A professional can cite numerous …
Keys to Successful Buy Side M&A Transactions
Many investment bankers believe that buy side M&A transactions are more diffi cult than those on the sell side and that such projects have a substantially lower probability of closing. Therefore, they avoid these engagements altogether. While their concern is warranted in many situations, it arises from problems that, while understandable, can be addressed and …
Timing the Sale of a Business for the Best Return
As with every human endeavor, timing is a critical element in the sale of a business. Often timing is driven by essentially involuntary factors such as an owner reaching retirement age, resignation of a key employee, an offer out of the blue from a prospective buyer, or, in a worst case, financial desperation. Lack of …
Can You Hear Me Now? Really Listening to a Client
