Mark Jordan
  A Monthly News Brief on Mergers & Acquisitions July 2003  

in this issue

Forget the Sunset - This Tax Cut's Here to Stay

Learn From My Mistakes

Doing Business in Foreign Countries - Part II

Creativity of the Dealmaker - The MESOP

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Forget the Sunset - This Tax Cut's Here to Stay

Over the past five months, critics declared the dividend tax cut dead more times than Generalissimo Franco. Last Wednesday, I sat in the East Room of the White House and watched President Bush sign it into law. From a cold start the day after Baghdad fell, he literally dragged the tax cut across the finish line with his own hands, one senator at a time. Now the same people are telling us it won't work to stimulate growth anyway because, according to the sunset provisions in the tax bill, the 15 percent reduced dividend tax rate disappears like Cinderella's glass slippers at midnight on December 31, 2008. Don't bet on it. This is one sunset they will never get to see.

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   Greetings!

Still feeling economic pressure? Pressure from tightening credit policies, foreign markets and a tentative business environment. It is clear the average business owner reacts to a crisis, but the extraordinary owner prepares in advance for problems and has contingency plans in place. One of the goals of our monthly news briefs is to arm you with planning ideas - ideas that can form the basis for strategic planning and lead to greater business success.

This issue includes articles on selecting an M&A firm, MESOP's, and thoughts from Dr. John Rutledge on the new tax cut legislation. Lastly, we have the second in a series of articles entitled "Doing Business in Foreign Countries."

  • Learn From My Mistakes
  •   The intermediary plays a significant role and is highly compensated for it. Learn from my mistakes and do your homework. Check processes, methodology and references. In this article, I have put together a series of questions I should have asked before I sold my first company.

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  • Doing Business in Foreign Countries - Part II
  •   In the previous article (February newsletter), a summary was given of how the legal origin of a country is related to how you operate your business in that country. It included a brief introduction of how legal origins are related to corporate ownership, financial development, and investor protection as well. This article is the second in a four part series. In this article, more explanation on how four legal systems vary and what the variations mean to a business owner in practice will be discussed.

    Full Story

  • Creativity of the Dealmaker - The MESOP
  •   One of the most critical abilities of a dealmaker is the ability to think outside the box. Seeing the puzzle pieces and automatically beginning the assembly process. Rick Dillon has taken several standard "deal" puzzle pieces to create a non-standard solutions platform - the MESOP, which stands for Managing Executive Succession Ownership Platform. Though a MESOP has many similar features as an ESOP Employee Stock Ownership Plan, it has been put together with traditional puzzle pieces in a non-traditional way that eliminates the time, expense, and regulations that would be associated with an ESOP type platform.

    More Information ...

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