May 17, 2017 at 10:53AM
from Associated Press
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Showing posts with label May 17. Show all posts
Showing posts with label May 17. Show all posts
Wednesday, May 17, 2017
Score check: Bihar to put up results on BSEB website soon, follow www.biharboard.ac.in
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May 17, 2017 at 10:45AM
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Is the Market Right for Selling Your Business?
As we head closer toward the end of the second quarter of 2017, timing elements for corporate mergers and acquisitions are beginning to weigh on the minds of individual business sellers. Is now the right time for selling my business? If I wait, will I miss the wave before another recession ensues? The lack of a crystal ball often makes business decisions difficult. And while no decision should ever be made on macro-factors alone, the overall market should play a key role in choosing the right time to selling a business. We are currently in the caboose stages of one of the longest bull markets in history. The party cannot last forever. Hence, business owners need to weigh all the macro factors that may create the perfect storm for selling the business in the next 12 to 24 months. What follows are a few factors aiding the perfect storm for sell-side M&A.
Historically Low Interest Rates
Debt is almost always a portion of private equity and corporate acquisition deal structures. In fact, all-equity deals are a rare breed indeed. With interest rates at historic lows, strategic and financial buyers alike are able to obtain assets with a much lower cost of capital compared to historical trends. This makes M&A easier and less costly, giving private equity acquirers the ability to afford to pay higher multiples while still achieving benchmark returns for their limited partners and corporate shareholders.
Interest rates continue to stay at historic lows. The Fed has postured at the idea of raising rates and “easing” up on all the quantitative easing, but many prognosticators feel the Fed is afraid to let up on the gas pedal. At some point this inexpensive capital may come to an end. And while owners cannot control what happens with interest rates and other macroeconomic factors, they do have some control over the timing of an ultimate business sale.
Private Equity Dry Powder
Private equity buyers currently hold over $1.3T in dry power (un-invested funds). The PE fundraising machine continues continues to march on, further increasing the amount of capital that remains on the sidelines–all of it looking for quality, invest-able deals. With a larger hoard of cash chasing fewer and fewer deals, there remains a high demand for quality middle-market opportunities among financial buyers. With excessive capital chasing “good / valuable” companies no wonder M&A spending and deal multiples are up.
Strategic Cash Reserves
American corporations (often referred to as the “strategic buyers”) have never had more cash on their balance sheets. This is likely due in part to post-recession discipline and lack of opportunity to invest in systemic growth anemia. With “buy vs. build” alive and well, strategic buyers are also competing for quality opportunities in nearly every market vertical.
Ten Year Transfer Cycle
Transfer cycles in economics are often used as a means to gauge the best timing of buying, selling or holding strategic and financial assets. Such predictions usually hold true for everything from homes to stocks in privately-held businesses. Rob Slee et al, “Private Capital Markets” , one of the foremost in tracking transfer cycles, predicts the current divestiture cycle will crest 2018.
Baby Boomer Retirement
It is expected that a glut of companies will be flooding the market as baby boomers look to retire. They are currently doing so at a rate of 10,000 per day–for about the next 15 years. The supply demand economics of this trend will be real. In 2016 the first wave of boomers turned 70 (born 1946 – Post WWII) followed by the next three waves. Get ahead of the supply and demand curve. Again you can’t control this variable but can profit from knowledge of it.
Market Multiples Are Way Up
M&A sales multiples and overall private company values are up across the board. More capital is chasing fewer quality opportunities, particularly in the middle market. This continues to drive prices up. As a good friend in private equity put it the other day, “all the deals we have seen of late have been atrocious.” We continue to see 7x to 12x EBITDA multiples in industries where historical turns have been in the 4x to 6x range. Valuations are up = the time to sell is now.
Planning a proper exit of a private business is never an easy decision, macro-timing factors excluded. When you stack on internal corporate performance combined with personal readiness, the complexities of the decision tend to mount. Questions such as, “is the business ready and prepared to be sold?” “Am I ready and prepared to sell?” “Am I willing to put in another 18 to 24 months to pushing hard as an operator in order to get the highest possible multiple?” “How does my growth path stack against the macro conditions discussed above?”
Market froth does not last forever. Selling on the way up is important from both an internal as well as an external perspective. That’s where an investment banker can add excessive value in the transaction.
May 17, 2017 at 10:28AM
from Nate Nead
Railway catering services not exempt from sales tax: Bombay HC
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The only contention and which has prevailed throughout is that the departmental catering service being a property of the Union of India through General Manager, Western Railway, it squarely falls within the exemption provision and particularly carved out by Article 285 of the Constitution of India. That exempts property of the Union from the State taxation.
May 17, 2017 at 09:38AM
from editor2
Modus operandi adopted by tax evaders during demonetisation
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This document presents the strategy and current status of Operation Clean Money. It intends to explain the Income-tax Department’s approach to verification of cash deposits as a means to promote and enhance voluntary compliance. It also contains a section on the different modus operandi adopted by tax evaders as observed and documented by the Department for future use and guidance.
May 17, 2017 at 09:19AM
from admin
Berkshire drops 21st Century Fox stake
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May 17, 2017 at 10:26AM
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Ukraine imposes new sanctions on Russian social media and web services
Ukraine has imposed new sanctions on Russian social media and web services, affecting millions of its citizens and leaving many users anxious about their data. Kyiv later accused Russia of a retaliatory cyber-attack. Ukraine has taken a further step in cutting the cord with Russia: President Petro Poroshenko … Read full article »
May 17, 2017 at 10:25AM
from Roman Goncharenko
World’s rich confident they can scale wall of global risk: Survey
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May 17, 2017 at 10:26AM
from
Donald Trump, James Comey and ‘this Russia thing’ – the crises rocking the White House
May 17, 2017 at 10:23AM
from Chris Graham
Breaking up banks: Trump is all noise
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May 17, 2017 at 10:26AM
from
Finance Department double-bills thousands of property owners – New York Post
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Finance Department double-bills thousands of property owners
New York Post The city’s Department of Finance double-billed numerous property owners for transfer taxes on home sales they had already paid in a recent mailing to 5,600 individuals seeking to recoup $3.6 million, The Post has learned. Some of the bills sought taxes … |
May 17, 2017 at 10:22AM
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CreditEase’s Tang Joins Oxford Said’s New Global Leadership Council
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BEIJING, May 17, 2017 /PRNewswire/ — CreditEase announces today that its founder and CEO Ning Tang has been appointed to the University of Oxford’s Said Business School’s (“Oxford Said”) new Global Leadership Council. This council of senior global leaders will provide independent advice…
May 17, 2017 at 10:14AM
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Tata Steel rises as March-quarter net loss narrows
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Shares of Tata Steel jumped as March-quarter loss narrowed.
The stock rose as much as 5.1 per cent to its highest since April 12.
The company has reported a consolidated net loss of ₹1,168 crore …
May 17, 2017 at 10:18AM
from
ABAD fears abolition of fixed tax – The Express Tribune
The Express Tribune |
ABAD fears abolition of fixed tax
The Express Tribune KARACHI: The Association of Builders and Developers of Pakistan (ABAD) – a country-wide body of over 700 members – has expressed concern over the possible move of the Federal Board of Revenue (FBR) to abolish the fixed tax regime for builders and … |
May 17, 2017 at 10:09AM
from
JIT quietly doing its tough assignment – The News International
The Nation |
JIT quietly doing its tough assignment
The News International … made public by the JIT related to summoning of record by it from different organizations including the National Accountability Bureau (NAB), Federal Investigation Agency (FIA), Election Commission of Pakistan (ECP) and Federal Board of Revenue (FBR). Panama JIT seeks services of British audit firm | Aaj NewsAaj Tv (press release) (blog) Panama Leaks case: JIT seeks record of Sharif family’s 1985-2016 tax returns from FBRThe Nation JIT to seek Nawaz Sharif’s tax recordDeccan Chronicle Pakistan Today all 29 news articles » |
May 17, 2017 at 10:09AM
from
Buy Power Finance Corporation 170 Call; Hexaware may test Rs 525: Amit Gupta
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May 17, 2017 at 10:13AM
from
Wealth Managers Dress the Part to Woo Millennials
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Veronica Dagher, host of the Wall Street Journal podcast “Watching Your Wealth,” says financial advisors are finding they need to change their approach – and their clothes – to win the business of millennials.
May 17, 2017 at 10:06AM
from podcast@wsj.com (The Wall Street Journal)
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