Corporations Returning to Investment Strategies

Daily Herald (Arlington Heights, IL), April 16, 2012 | Go to article overview

Corporations Returning to Investment Strategies


The U.S. economy in 2012 is proving to be a favorable climate for the purchase and sale of businesses. Many companies are spending cash reserves on strategic and value acquisitions designed to improve their business, rather than continuing to preserve cash to protect against a difficult economy. Private equity funds are seeking to maximize their long-held portfolio investments and to seize new opportunities. Banks have stabilized their capital positions and are lending again.

In this climate, small and middle-market companies may want to sell their businesses for a variety of reasons, including diversification into other investment opportunities; the opportunity to realize a profit for the first time in the last several years; the owners' desire to move on or retire; conflict between the owners; business adversity such as capital shortage, aging management or the loss of key personnel; the opportunity to strategically exit a market or to exit from a declining market suffering from overseas competition.

Buyers may seek to invest their long held resources in successful small and middle-market firms; enter into a new line of products or geographic markets that will function synergistically with the buyer's existing operations; obtain particular strategic assets such as real estate, intellectual property or equipment; obtain new sources of supply or channels for distribution; obtain working capital or key personnel; or realize tax advantages from acquiring a target business.

The parties must determine the optimal transaction structure to achieve their objectives. The form of transaction is influenced by federal tax laws, the nature of the acquiring company, and the specific characteristics of the target business. In a basic sense, the purchase and sale of businesses occurs in one of three ways:

1. Merger/Consolidation. A merger occurs when one company absorbs another and acquires all of the property, rights and obligations of the absorbed company. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Corporations Returning to Investment Strategies
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    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.