Most U.S. business owners and executives watched with chagrin as their businesses lost significant value during the recent recession. The good news is that economists generally agree the U.S. economy is in recovery mode, though some are more optimistic (or pessimistic) than others. Nonetheless, for businesses that survived the recession, value is slowing returning.
The return of business value and increasing financial market stability mean the Mergers and Acquisitions climate is beginning to thaw. As more private equity firms look for worthwhile investments, third parties are stepping up to offer match-making services.
Corporation Service Company is one such third party offering “free, confidential private equity networking services” to its customers. CSC identifies existing customers in need of growth or buyout capital and introduces customers to pre-screened private equity firms with funds and relevant expertise. Sounds like a win-win, as long as everyone does their homework.
The Harvard Business Review estimates that companies spend more than $2 trillion on acquisitions every year, yet the M&A failure rate is between 70% and 90%. The biggest reasons for failure are poor matches, faulty valuation estimates, and integration difficulties.
A closer look at recent M&A statistics show energy, mining, and utilities lead the charge, with consumer, retail, and leisure industries in second place.
If you are a business contemplating a merger or acquisition, or thinking now may be a good time to sell, consult the attorneys at Glass & Goldberg and put our experience in commercial and consumer lending, finance, and business law to work for you.
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