Magazine article Business Credit

Frontpage

Magazine article Business Credit

Frontpage

Article excerpt

M&A Activity Sets New Record In The A/R Management Industry

After a slow start in the first half of the year, 2005 M&A activity kicked into high gear in the Accounts Receivable Management (ARM) industry thanks to a dramatic spike in third quarter transactions that produced $1.14 billion in total deal value, the largest amount of deal value ever recorded in a quarter. Based on the timing of when pending deals in the market close, the total deal value for 2005 could exceed last year's record-breaking results of $1.6 billion. High transaction values and competitive deal structures can be attributed to an economic "sweet spot" in the ARM industry. Declining unemployment, rising inflation, and increasing interest rates all create favorable conditions for the ARM industry. With low capital gains taxes, access to relatively cheap debt, and an excess of cash reserves in corporate balance sheets and investment funds, optimal conditions exist for buyers to continue their robust deal activity in this and other industries.

Source: Kaulkin Ginsberg Company

Comprehensive Labor Index At Odds With White House Claims

This year, the Bush administration has cited the half-point decline in the unemployment rate as evidence of the economy's strength. But the government's unemployment rate is not a good gauge of economic health, according to Greg Werlinich, president of Werlinich Asset Management. Using additional government statistics, Werlinich developed the proprietary Werlinich Comprehensive Labor Index(TM). The index suggests that, while the unemployment rate has fallen from 5.2 percent to 4.9 percent over the last quarter, the true number of people facing adversity in the labor market has really been around 9.5 percent over the same period. The index aggregates the unemployment rate, the number of part-time workers seeking fulltime jobs, and what the government calls "marginally attached workers": those who have searched for a job sometime during the past year, but not in the 30 days preceding the survey-therefore not counted as "unemployed." Werlinich's assertions are bolstered by the University of Michigan Consumer Confidence Index, which is at unusually low levels relative to the unemployment rate. "What we're finding," says Werlinich, "is that average citizens have a better gut feeling for the economic picture than elected officials." It's not only Werlinich who is dubious about claims that the economy is in structurally sound condition. Stephen Roach, chief economist at investment bank Morgan Stanley, has warned that the U. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.