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Thursday, February 4, 2010

Strategic Acquisitions - Buyers Market!

Change = Opportunity. With the changing face of the economy, negativity running rapid, growth opportunities are available to capitalize and drive the future of your business.

Strategic buyers currently have a competitive advantage in current economy opposed to private equity. The strategic buyers are closing 94% of announced mergers and acquisitions.

Key components of an acquisition analysis:
  • Purchase technology to catapult above competition
  • Acquire and additional product line that complements, adds value, and creates competitive advantage.
  • Target companies have attractively low PE ratios
  • Expand intellectual properties
  • Increase customer base
  • Reduce overall costs
  • Improve asset utilization
Reference:
Entrepreneur
CFO.com
Inc.
Small and Mid-Size Business