M & A Outlook
Merger and acquisition activity has begun to pick up in
part due to a stimulated economy. Lower interest
rates and lower tax rates have provided a booster shot
to the economy which may produce as much as five
percent GDP growth in the second half of the year as
predicted by some economists. This type of
environment should bode well for defense and financial
companies. It is becoming clear that the defense
budget will continue to increase and become a larger
percentage of GDP over the next few years. Retailers
have performed well throughout 2003 and should
continue to do well in the fourth quarter as consumers
begin spending their income tax rebates courtesy of the
Jobs and Growth Tax Relief Reconciliation Act of 2003.
Merger and acquisition activity will continue to improve
as the capital requirements of growing companies
become more evident and there is a clearer vision of
the general economy. Private placement transactions,
public offerings, and mergers and acquisitions will assist
in creating the necessary financing to fuel this growth.
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| Acquisition Agreements | | |  In this day and age, it is imperative that the acquisition
agreement be drafted as tightly and specifically as
possible in order to make every detail of the acquisition
clear so that it is not only capable of subsequent
implementation but, also, so that it is defensible from
the standpoint of any potential future litigation. You
cannot count on the honor or the common sense of the
other party, or worse yet, the good judgment of the
legal system, to ensure that your transaction closes
smoothly and ends with the exchange of consideration
between the parties.Read More... | | |
| Vercor Opens Chicago Office | | | VERCOR will begin operations October 1, 2003 from the
newly licensed North Central office. VERCOR is
composed of experienced business advisors
who offer a range of specialty skills, industry contacts,
and professional credentials. With nationwide offices,
VERCOR is positioned to assist business owners across
the country and internationally. Rex Slagel, Managing Director of the new office has
assisted clients in the Chicago area for the last eight
years and this newly formed association with VERCOR
will bring mid-sized businesses in the region the kind of
global resources usually available only in large
transactions. VERCOR Illinois can be reached at (815)
609-5019.
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| Tax Planning | | |  The new tax law slashes taxes on dividends and capital
gains. Furthermore, the expansion of business write-
offs and a smorgasbord of new planning ideas have
evolved subsequent to this legislation being enacted.
Procrastination could be very costly this year. Many of
the new changes involve proper timing. Act now to
ensure that your company is positioned to benefit form
the new rules.More Information ... | | |
| Vercor Seeking Additional Deal Makers | | |  Vercor is interested in further expanding our national
footprint. We now have seven offices around the
country, and are interested in expanding further to
meet the needs of our national strategic marketing. The
ideal candidate is:
An intermediary who is looking to start their own firm
and wants to be a part of a national organization with
proven systems and procedures in place.
An existing firm with a desire to substantially improve
and grow their practice.
Let us know if you are aware of any individuals or firms
who would like to have further dialogue regarding this
opportunity.
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