Mistakes to Avoid
In yet another demonstration of India’s growing buying power, the Tata Group acquired Jaguar and Land Rover from Ford Motors at a cost of USD 2.3 billion. The deal was ranked as one of the record breaking deals by corporate India.
Acquisitions, outbound or not, have one common feature. The buyer pays the target firm a premium above its current market value. Underlying this willingness to pay a premium is the belief that the target would be worth more if it were owned b... Read Full Story
Case Study
Situation: Twenty years following the launch of ConArt, a manufacturer and erector of precast architectural and structural components, Mr. Lyle found himself seeking to sell his company during the height of one of the country’s worst economic and construction industry downturns in recent history.
Solution: Faced with an unusually difficult engagement, CFA prepared a detailed [...] Read Full Story
In the current market, we are faced with companies and governments requiring the expansion or renovation of their capital intensive assets in various related infrastructure market segments. Whether expanding manufacturing facilities, implementing new infrastructure capacity or leveraging existing assets for expansion into different regions or market niches, innovative financing is often at the core of long-term projects to transform a company’s strategy. The ability to transform and execute... Read Full Story
If You Want Funding This Year
Several CFO’s have recently asked me “When will the capital markets “return to normal?” My answer is: Not this year. Therefore, if you are a C-level executive that wants to obtain funding for your company, you might consider leveraging your company’s top-line gross revenues with a new form of financing structure from Entrex, Inc., based in Chicago, and Bank of New York/Mellon, and made available to you through your corporate finance investmen... Read Full Story
When stock consideration is involved in a merger or acquisition, the type A reorganization is a popular way to structure the transaction for income tax planning and compliance purposes. Relative to the other reorganization choices described in the Internal Revenue Code, the type A provides flexibility that is not found in the other types of reorganizations. The principal benefit of having a transaction meet the requirements of a type A reorganization is the deferral of income taxes. If the... Read Full Story
When selling a business there are many layers of confidentiality and they are all a major concern to business sellers. More often than not, when we hear a seller express concern about confidentiality they are primarily focused on the possible damage competitors might cause should they learn that the business is for sale. This is a real concern about which many articles have been written; however, another layer of confidentiality which has received less attention is that which relates to em... Read Full Story
When selling a business there are many layers of confidentiality and they are all a major concern to business sellers. More often than not, when we hear a seller express concern about confidentiality they are primarily focused on the possible damage competitors might cause should they learn that the business is for sale. This is a real concern about which many articles have been written; however, another layer of confidentiality which has received less attention is that which relates to em... Read Full Story
When selling all or part of a business, identifying qualified buyers is very important to an effective sales process. Before I go into my process I would like to share a story that involves my joining CFA in 2004 and being interviewed by a senior investment banker from our Dallas office.
When I was explaining to him my “deal experience” from the four prior years he responded, “Oh, you have been working as a business broker”. I then asked him to explain to me how he distinguished between a b... Read Full Story
When selling all or part of a business, identifying qualified buyers is very important to an effective sales process. Before I go into my process I would like to share a story that involves my joining CFA in 2004 and being interviewed by a senior investment banker from our Dallas office.
When I was explaining to him my “deal experience” from the four prior years he responded, “Oh, you have been working as a business broker” I then asked him to explain to me how he d... Read Full Story
