Dr. John Psarouthakis, Executive Editor of www.BusinessThnker.com, is the Founder and former CEO of JP Industries, Inc, a Fortune 500 industrial group. that acquired 28 operations in USA and western Europe before merging with T&N, a British group.
Because the content of this article is still relevant today as it was in 2009 when it was first posted we are reposting it today.
The successful mergers and acquisitions require a great deal more than just analysis of the financial statements of the candidate. Digging in deeply in the operating details and asking the right questions is a fundamental component of evaluating the candidate. A very involved and intense discussion of all aspects of the business is necessary.
The M&A team will be faced with many challenges and numerous time-critical deadlines and milestones to be met. Customers want to know what is going on, suppliers similarly. During the early stages of the integration process the board’s executive committee must closely oversee and evaluate the effectiveness of the process..
Continue reading A Few Notes on Mergers & Acquisitions
Ms. Katerina Kapernarakou is a journalist for the Greek newspaper “Kathimerini”, and a contributor to the BusinessThinker.com covering the international business, economic, and financial issues.
Giulio Tremonti seems to have received multiple attacks, finding himself in “the eye of the storm.” The Finance Minister of Italy has to handle the rising borrowing costs of the country and all the questions that the markets raise in their usual compelling manner; these questions refer to the ability of Italy to respond to its debt and fiscal deficit obligations. At the same time, Tremonti’s relations with Silvio Berlusconi, the Prime Minister, are strained, as the latter accuses him of “lack of teamwork” in his already fragmented government. Also, he has to oversee the promotion of the austerity measures he has prepared in order to prevent the bad scenario about an Italy’s bailout. Although most of the measures have been put off until after the 2013 elections, he may have to implement them hastingly in advance because of the pressures of the market. Moreover, Giulio Tremonti should face another challenge.
Italy’s Finance Minister is considered by the international financial community as the guardian of fiscal discipline in the country and is identified as the shield against Berlusconian populism and extreme expenses. However, he made an error incompatible with his overall political stance, according to which he has strongly affirmed his intention to crack down on tax evasion. Marco Milanese, Tremonti’s former close associate who is investigated on alleged corruption, has testified he had provided Tremonti a luxurious apartment in Rome on 1,000 euros rent per week.
Continue reading GIULIO TREMONTI: In the “Eye” of the Market and of Berlusconi. (a commentary on the Italian financial situation).
The Dot Com Bubble was painful, but we survived. Less than a decade later we are trapped in the Overleveraged, Overreaching Financial Institutions Bubble. This is a truly fearsome bubble. But we will survive.
It is time now to warn you of our next bubble. That siren you hear is your alert to the Productivity Swap Bubble. You heard it here first.
Unlike “credit swaps,” productivity swaps are easily recognized. What’s more they are something we all do every day. It makes Tom Sawyer’s fence-painting deal with Huck Finn look like, well, child’s play. The numbers crunchers, though, have done an excellent job of hiding the truth.
Productivity has always been the linchpin of America’s economic prowess. Our workers, our technology, our business processes have made the U.S. get ’er done like no one else on Earth. Or so the experts have said, from the good old days of the manufacturing economy right on into the service and information economy. Who are they trying to kid? Continue reading The Next Bubble: Your Toil-Your Trouble