"These are the days of miracle and wonder," as Paul Simon referred to optimism and humor in his album Graceland, in a world filled with terrorism and famine. A poignant contrast, but still appropriate in the world we live in today.
So does our view of the merger and acquisition market. Perhaps less threatening and depressing, but rising interest rates, threats of war, popping inflation and uncertainty all around you.
Alternatives
But is it that bad? No, especially when you consider your alternatives. In the search for investments, gold is not delivering shine for now and the stock markets are not top notch. If you put your hard-earned money in the bank account, a meager return awaits. Add inflation on top and you're in the minus.
Then real estate? Well, banker's interest and repayments don't make it any easier. Building is expensive and cash flow is soon negative. Escape into bitcoins? I wouldn't dare.
Investing in businesses
What you get from afar is delicious and the grass always seems greener in the other market. But what could be better than investing or participating in a business that makes great products, offers services and is distinctive in the market?
An acquisition or merger really isn't always easy, and selection starts at the gate. Recently, a client of ours acquired his colleague. In light of this acquisition, he was willing to put in his very last dime with the banker and he was almost willing to finance on any terms.
Why? Because he believed in it, because he was convinced of better returns, because he knew it was doable, because he knew he could do better, because he knew he could add value. It was in his ability, and not in someone else's sphere of influence.
Add business
We believe we are living in a golden age. Prosperity is higher than ever, fewer people worldwide are living in poverty and healthcare is getting better and better. Interest rates will also really start to fall again in time. There is plenty of money on hand.
Aren't we seeing ripples? Yep: labor productivity is declining year after year in our country. That's not a good thing. We are becoming addicted to working less and taking more vacation. That has to change.
By investing smarter, by adding a business to your business, opportunities can arise and new combinations can take shape. As a business owner, you hold the cards. And that guidance in buying or selling? That's specialist work, and in good hands with us.
"It's a turnaround jump shot, it's everybody jump start, it's every generation throws a hero up the pop charts." Could Paul Simon have also been active in mergers and acquisitions? Couldn't be otherwise!
