The decision to make an acquisition is no small step. While there is risk inherent in any acquisition, the downsides can pale next to the potentially enormous rewards. In my post on the Association for Corporate Growth blog, I outline how to plan a new acquisition so you can minimize the risk and reap the …
Tag: External Growth
Looking to the Future
As we begin the new year, I am reminded of the importance of looking to the future for growth. One of the tools I use at Capstone when we begin work with clients is Michael Porter’s ‘‘Five Forces’’ model for analyzing a company’s relative position in the market. It invites you to look at the pressures …
Seven Strategic Questions
Last week, I wrote about the importance of self-exploration. To begin your journey of self-exploration, here are seven strategic questions you may find helpful: 1) What business are we in? 2) What is our core competency? 3) What are we not? 4) Where is our pain? 5) What are our dreams? 6) What is our …
Choosing the Right Growth Pathway
As you move from developing the strategic foundations for growth to implementing your growth plan, think about the different pathways to growth. Choosing the right pathway for growth is considered to be the heart of business. In the Association for Corporate Growth (ACG) blog, I outline some of the strategic pathways you can take for growth, …
Price Isn’t Everything
Are you considering an acquisition? Remember, when it comes to buying companies, especially privately held ones, the transaction is almost never about just the price. There is always something going on that falls outside the spreadsheets. Understanding that mysterious ‘‘something’’ is what can make or break your deal. The statistics are frightening. By most reckonings, …
“Go-Shop Clause”
Edelman Financial Group agreed to sell their business for $258 million which is reported to be a 43% premium over their stock price. The interesting thing is the agreement includes a 40 day “go-shop clause” where the company can seek higher bids. I have been talking about these provisions for several years and expect you’ll …
Monkey See, Monkey Do
While visiting my brother’s family and partaking in a delicious cupcake during my niece’s one year milestone birthday celebration, I had a valuation thought…she was doing what most kids at that age do: copying the older kids’ movements. Waving, smiling, stuffing cake in her face and, of course, throwing everything. Adults, some very experienced, tend …
Why is Fortis Acquiring CH Energy?
Fortis, Inc (TSX: FTS), a Canadian utility company, announced yesterday that it is acquiring CH Energy Group (NYSE: CHG) for $1B in cash plus the assumption of $500K in debt, which is about 10x 2011 EBITDA. CH Energy, which is a public utility headquartered in Poughkeepsie, NY, said this about the benefits of the acquisition: …
