When you think about your company’s growth, ask yourself, “What is our risk tolerance?” The answer is key to formulating your strategy. You cannot succeed with a plan for growth that pushes too far beyond the level of risk that is acceptable in your company. If you are the sole owner, the level of risk …
Tag: strategy
Recent Deals: Berkshire Hathaway & 3G Capital Buy Heinz, Office Depot-Office Max Merger
Recently, there have been some fairly significant transactions, and I want to mention these and tell you what they may mean for corporate executives. The first deal we have is Berkshire Hathaway and 3G Capital acquiring Heinz for $23.2 billion. Really, if you include debt, that transaction looks to be just under a $30 billion …
Developing Prospect Criteria
As I’ve stressed in an earlier post, I recommend including not-for-sale companies in your acquisition search. This will significantly expand your universe of potential acquisition prospects. However, with such a large pool, you must develop criteria through which to filter the prospects in order to narrow your options. The first step in establishing your criteria for prospects …
“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 …
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: …
