An extremely important and usually the most critical part of the acquisition process is a well-conducted due diligence. This is not a stage where the financial condition only of the company is thoroughly checked out—far from it. It is a stage when the entire business relates to its operations, supplier relations, customer relations, employee relations, relations with the financial institutions it deals with, its strategy, businessdevelopment plans, and so on as we will see in this and the nex tarticle.
It is rather evident that this process can be a very expensive undertaking. Therefore, it is strongly recommended that the due diligence process is divided in to two stages: the preliminary stage and the formal stage. Basically your goal in preliminary due diligence, once you have obtained enough information to have an understanding that the company meets your criteria, is to determine early in the process whether or not there are any obvious skeletons in the closet—anything of significance hidden from you that could seriously jeopardize the value of the company, whether there is a drop in sales or unanticipated major expenses, any major lawsuits and the like.
Continue reading PRELIMINARY DUE DILIGENCE (This is the 9th article in the series on M&A)
Mr. Richard Rush is a Vice President at PNC. He has over 24 years of financial services experience including serving as managing director at Wi Trust; divisional director at Alliance Bernstein; portfolio manager and director of research at Fox Asset Management; and national director of institutional consulting at Prudential Securities. Richard currently serves a Investment Advisor at PNC Wealth Management. He is an invited contributor at The Business Thinker, llc.
Leadership does change. Whether it’s in a car race, in a classroom or even in a country — whoever or whatever leads — eventually changes. That’s history.
In this context, it is easy to understand then, that changes or shifts occur in all things. By virtue of this certainty, and the ability to exploit that change, does it not warrant some important considerations in investing behaviors as well? For example, the premise that there aresignificant and sustained leadership changes in the stock market’s three primary equity capitalization groups called: Large, Medium and Small Capitalization stocks, is a given. That’s also history. Each capitalization group has led the market, and each has trailed the market, in sustained fashion but always in random rotation. Clearly, fertile territory exists within which to exploit this certain but random change. Continue reading Signaling Equity Performance Shifts by Size and Style
Mr. Richard Parker is the author of the “How To Buy A Good Business At A Great Price” series which is sold in over 80 countries. He is the founder of Diomo Corporation and has personally purchased eleven businesses. Learn more about Richard and his materials at diomo.com (www.diomo.com)
It’s amazing how we see an immediate increase in our business right after the December holidays and the day after every long weekend. The former may be many “New Year’s Resolutioners” as I call them, and the latter is because most people dread the thought of going back to their job after an extended weekend. So, let’s pretend it’s the holidays right now, and sing to yourself: “All I Want for Christmas is a business of my own…”
If you have any desire to be in business for yourself, then now’s the time to make your move! In fact, there has never been a better time to take that step. So this year, buy yourself the greatest gift of all – a business of your own!
Continue reading The Best Gift You Can Ever Buy For Yourself: A Business of Your Own!