|
No risk, no reward is one of the oldest adages in business. This formulation of strategic risk was first expressed in written form by the Greek scholar Herodotus in 450 B.C.
In the realm of corporate mergers and acquisitions, the challenge for many companies is to obtain a highly desirable product or technology while risking as little capital as possible.
While growth through Merger and Acquisition continues to be a highly popular strategy - in 2006 there was a record $3.6 trillion in Merger and Acquisition activity, according to Thompson Financial - many CEOs and CFOs remain wary about making deals. In a recent survey of large corporation executives by Accenture, 45 percent reported their most recent Merger and Acquisition deal had failed to deliver all of the expected results.
One solution to traditional outright purchases is the hybrid Merger and Acquisition model. It is becoming increasingly popular.
Dave Kauppi is a Merger and Acquisition Advisor with MidMarket Capital Advisors, LLC. MMCA is a private investment banking and business broker firm specializing in providing corporate finance and business intermediary services to entrepreneurs and middle market corporate clients in a variety of industries. The firm counsels clients in the areas of M&A and divestiture, family business succession planning, valuations, minority interest shareholder sales, business sales and business acquisition. Dave is a Certified Business Intermediary (CBI), a licensed business broker, and a member of IBBA (International Business Brokers Association) and the MBBI ( Midwest Business Brokers and Intermediaries). Contact Dave Kauppi at (630) 325-0123, email davekauppi@midmarkcap.com or visit our Web page www.midmarkcap.com.
|
