Last Build Date: Sun, 23 Oct 2016 16:45:40 -0400
Tue, 27 Sep 2011 00:00:00 -0400Often the success or failure of an M and A can be predicted well before the deal is done. Being aware of key factors that affect the success of a corporate merger will be beneficial in the long run. One of the smartest ways to make an M and A decision is to rely on the advice and expertise of professionals in the field. Proformative.com is a free, open and independent community of corporate finance, accounting, treasury and related professionals that offers a wealth of expert advice and information.
Thu, 18 Aug 2011 00:00:00 -0400During the last few years, investors in the U.S. have been actively investing and making significant returns in reverse-takeover stocks. Although reverse mergers have been in existence for decades, it has become increasingly common for a foreign private company to use this route to become a domestic issuer. It's easier and cheaper. In the case of Chinese reverse mergers, this often results in Chinese stocks with almost all of their operations in China, while their securities trade in the U.S.
Fri, 19 Mar 2010 00:00:00 -0400The concept behind this combining is a fact that the value of shareholder is above than that of the sum of two companies alone. Merger and acquisition terms are used alternatively, but they have a slight difference in their meaning.
Mon, 25 Aug 2008 00:00:00 -0400The U.S. headlines assault our senses daily with earnings taking a hit, investors withholding capital, inflation rearing its ugly head, and seemingly endless volatility in the securities trading markets. How can businesses navigate the maze to seize opportunities in the current economic environment? What recourse do private enterprises have to attain public trading status while mitigating risk?
Thu, 25 Jan 2007 00:00:00 -0500The merger mania is back now even at a higher level than during the days of Michael Milliken and junk bond mania. Of course, a lot of investors got severely burned when large parts of the junk bond market crashed in the late 1980s. Now junk bonds are back. There is a chase for higher and higher bond yields and may the risks be damned.
Thu, 25 Jan 2007 00:00:00 -0500There is a wave of mergers and acquisitions hitting Europe and other places. The Leveraged Buyout (LBO) and Mergers and Acquisitions (M and A) frenzy seem to be back with a vengeance. According to Reuters in Dec 2006, equity firms held more than $300 billion, with the prospect of firms being bought out and even going private.
Thu, 13 Jul 2006 00:00:00 -0400I was reading recently about the proposed merger between StorageTek and Sun. Two major technology companies, one making a comeback from bankruptcy and the other mired in a long slump, with several years of negative predictions about their business prospects. I don't have enough solid knowledge of the situation to decide whether it's a good idea from a strategic perspective or not. What I do know is that it probably will fail.
Wed, 28 Jun 2006 00:00:00 -0400In today's ever changing business environment Mergers and Acquisitions are playing an ever increasing role in shaping the landscape of corporate America. The interesting point here is that upwards of 70 per cent of these mergers fail to deliver on share holder expectations.
Thu, 22 Jun 2006 00:00:00 -0400Many employees are turning their daydream of being the boss into a reality in the form of a "leveraged buyout". Structuring a successful leveraged buyout can be demanding, and care in preparing the deal often makes the difference between great success and financial ruin. Following are 5 strategies to take to create a successful leveraged buyout.
Sat, 20 May 2006 00:00:00 -0400When you are looking at a company or business purchase, for a buyer the answer will usually be that it will be simpler quicker and more cost effective to buy the assets of a business rather than the shares itself. For the seller it will usually be more tax effective to sell the shares in the business. The reasons for this view are outlined below.
Fri, 07 Apr 2006 00:00:00 -0400"We tend to overestimate what we can accomplish in a day and underestimate what we can accomplish in a year." This is particularly true in the case of mergers or acquisitions. Recently, a company I founded, EMJ, was acquired by SYNNEX. Prior to that EMJ had acquired 12 other companies. The following is a list of lessons I have learned on how to do a successful merger.
Mon, 13 Mar 2006 00:00:00 -0500If you were to ask your employees or you customers what they thought of your business, what do you think they would say? Do you think they would be as positive if they were asked the same question by a stranger who happens to be a potential buyer of your business?
Thu, 12 Jan 2006 00:00:00 -0500Buying an existing small business is a gamble - but well worth it if you take the necessary steps to make sure the business is solvent, in good standing with the public and that you won't be taking on more than you bargained for (such as debt or damaged/outdated inventory). You can't be certain of its success, but there are some steps you can take to help uncover any pitfalls a business for sale might have. Here are some things to check into before you make your final decision.
Thu, 05 Jan 2006 00:00:00 -0500Many Reverse Mergers have been successful when done properly that is why I never consent to doing one without providing the company with the possible problems that can arise and how to deal with them.
Thu, 05 Jan 2006 00:00:00 -0500A reverse merger is a method used by many small and mid-cap companies to initially go public, its the purchase of, and reverse merger into, an existing public shell company. This is inexpensive compared with conventional Initial public offerings (IPO). This is also a simplified fast track method by which a private company can become a public company.
Thu, 05 Jan 2006 00:00:00 -0500One overlooked individual in the process of taking a company public through reverse merger is the market maker. The market marker is critical especially if the company is going to be listed on OTC Bulletin Board or the NQB. Pink sheets.
Thu, 05 Jan 2006 00:00:00 -0500Rule 15C211 Under SEC Rule 15C211, a U.S. securities broker or dealer may not publish a quotation for any security unless certain information concerning the issuer is available and the broker or dealer has a reasonable basis for believing that the information is accurate. The information requirement is satisfied, in simple terms, if:
Thu, 05 Jan 2006 00:00:00 -0500Small and mid-size companies looking to go public usually think IPO (Initial Public offering), but find it difficult to get an underwriter to look at them. They go out an engage a consultant that advises them to do a reverse merger and they usually jump into it head first without exploring the options.
Thu, 05 Jan 2006 00:00:00 -0500A corporate shell could be likened to a house that had been occupied by a family. Prior to the family moving out it was a home. But now it is just shell, a skeleton, a plain house with nobody in it, but if a family was to purchase the house and move in, it becomes a home.
Thu, 05 Jan 2006 00:00:00 -0500Many business owners with a dream to take their company public often neglect to prepare and plan for the future, very few small and mid-size companies have a business plan. A business plan is like a road map, and can be likened to when you go on a journey. Sometimes you need to change direction, it doesn't mean your destination changes, you are just getting there via a different route.
Thu, 05 Jan 2006 00:00:00 -0500There is a great deal of abuse going on in the OTC Bulletin Board Market and a lot of money is being made as result of it. Regulators are trying to deal with the problem but are unable to put a halt to it, unless they take drastic steps which will be detrimental to the small and micro-cap market.
Thu, 05 Jan 2006 00:00:00 -0500Are the promoters and consultants destroying the market for Reverse Merger? First lets take a look at reverse merger. In a Reverse Merger, an operating private company merges with a public company that has little or no assets, nor known liabilities (the "shell").
Tue, 15 Nov 2005 00:00:00 -0500Jet Aviation has announced that they have been sold, pending antitrust clearance, to the Permira Funds a leading international private equity specialist. Ending several years of speculation, the Zurich based operator of business jet services has finally accomplished what had long been expected: the sale of the Hirschmann family business to outsiders.
Thu, 03 Nov 2005 00:00:00 -0500The American retailing industry is witnessing the absorption of The May Department Stores Company ["May"] by the Federated Department Store group of companies. Pending federal approval, Federated will sell off as many as 68 May stores after the upcoming holiday season has been completed. How this plan will affect shoppers is only beginning to now be realized.
Mon, 31 Oct 2005 00:00:00 -0500One of the largest mergers in history nearly imploded soon after the agreement was signed. Daimler-Benz and Chrysler was touted as a "merger of equals" by some, while others insisted that it was nothing more than an outright acquisition of Chrysler by the German automaker. It certainly hasn't always been a pretty relationship, but things have definitely improved seven years into the marriage.