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"I'm
not sure what qualifies one to predict the unknown, but 2008 was
certainly more unpredictable than years past, reminding us of just
how futile those prophecies are," opens Erin Griffith's peHUB
article. She is right. Our inboxes receive annual forecasts from
business experts turned soothsayers. We heed their advice because
they are often right. Our current global economic climate does not
lend itself to predictions. That is why I find Erin's article
refreshing, and why I will spare you my own forecast and leave you
with some facts.
Dealogic reports that the mergers and acquisitions deal volume
dropped 29% in 2008 from a record-high in 2007. The plummet in deal
volume, according to a similar report by PricewaterhouseCoopers
Transaction Services Group, is triggering a rise in mergers of
necessity. Struggling businesses seeking to survive are merging with
stronger and larger corporations. Experts expect the current trend to
spark more distressed investments in the financial services,
automotive, consumer products and retail sectors in 2009.
The incoming administration's commitment to improving the nation's
basic services-infrastructure, technology, energy and healthcare in
particular-should create some opportunities for businesses seeking
strategic and organic growth. Healthcare remains a promising avenue
for deal activity. The emphasis on ensuring access to affordable
healthcare, modernizing medical records and promoting wellness and
disease prevention could generate more activity in the healthcare
industry in 2009. Pharmaceutical firms will continue to merge with
smaller drug manufacturers to maintain their steady churn of new
products on the market.
Healthcare is not the only industry experiencing a flurry of
movement. The financial services industry is abuzz with mergers.
PricewaterhouseCoopers' transaction services group partner, Robert
Filek, believes that as the economy deteriorates, more mergers will
come.
Although research and advisory firms have key sectors on their
radars, opportunities exist in every industry for business owners and
management teams with the right business intelligence, resources and
reputation. VERCOR is committed to providing its clients with the
business intelligence and resources necessary for advancing their
growth objectives-no matter the economic outlook.
Today, those resources come in the form of two great articles. (You
will not need business forecasts to follow this advice.) "Moving
Beyond Cost Cutting:Looking Deeper to Increase Efficiency and
Preserve Growth," will challenge you to take a closer at the
hidden inefficiencies within your organization and teach you to
eliminate them to bring about growth. "Tired of Strategic
Planning: Make Your Company's Efforts More Successful," will
inspire business owners to look beyond the ritualistic strategy
sessions for ways to innovate organizations. I encourage you to share
them with your team and your clients.
If bolstering your growth efforts in the middle market is one of your
resolutions, consider the team at VERCOR. We are a global middle
market investment bank with 17 offices worldwide, including five
offices across Canada, Asia and Europe. Opportunities will avail
themselves to business owners who prepared. We do not need
predictions to tell us that.
Happy New Year,
Mark Jordan
Managing Principal
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Tired of Strategic
Planning:
Make Your Company's
Efforts More Successful
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Many companies come
together for strategic planning meetings every year. After time,
these sessions become ritualistic and don't always payoff with new
innovative ideas. Participants often stay within their comfort zone,
creating strategies that don't align with the desired results. If
your company is tired of experiencing the same old results, try
giving your strategic planning process a fresh new approach.
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Moving Beyond Cost
Cutting
Looking
Deeper to Increase Efficiency and Preserve Growth
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Faced with rising
expenses, companies often focus on cost cutting initiatives.
Financial institutions dealt with this issue as their business models
became more complex, and operations weren't experiencing any
efficiency gains. But as financial institutions cut costs, profits
suffered because of service issues. Customers became dissatisfied,
with some even pulling their business altogether.
In earlier years, manufacturing companies dealt with similar issues
and learned valuable lessons on how to deal with rising costs. And
since financial institutions hadn't received any gains in labor
productivity since 1995, they took a hard look at strategic plans to
increase profits while managing costs.
The lessons manufacturing and financial institutions learned can
apply to all businesses. Companies that haven't had much success with
cost cutting may want to look deeper. Implementing a few new
strategies can assist your company in increasing efficiency, growing
business, and preserving your customer relationships.
Read On>>
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VERCOR's
dedication to the middle market affords you a wealth of resources
once reserved only for companies with revenues of over $100 million.
This means a robust databank containing thousands of active and
prospective buyers and private equity groups. Once we find the right
match for your business, we have the expertise to complete your
transaction masterfully from concept to completion.
Give your business the individualized attention it deserves backed
with the world-class resources of a leading middle market investment
bank.
Call
VERCOR at (770) 775-0647 for a complimentary snapshot valuation of
your company today.
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Industry
Insight Reports
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Gain valuable
insights into your industry with VERCOR's Industry Insight Reports.
CLICK HERE to
request a FREE copy of your Industry In Focus report.
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Ask
Mark
Have
an M&A question for a Middle Market Expert? CLICK
HERE to Ask Mark
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