Reviewing Acquisitions at the End of 2012

ConAgra-BrandsOn Tuesday, November 20th, three companies announced their plans to acquire various other businesses in multibillion dollar acquisitions.  Food giant ConAgra announced plans to purchase fledgling company Ralcorp, who provides privately labeled food products for grocery stores.  Real estate companies Equities Residential and Avalon Bay have also agreed to purchase a majority share in Archstone Enterprise who deals with extensive apartment holdings in major US markets.

To date, over 10,300 U.S. merger-and-acquisitions have occurred in transactions worth over $800 billion, says Dealogic.  That’s a 9% improvement in the number of deals, but it’s an 8% decline in terms of the dollar volume over last year.  This is considered by professionals such as Roger Aguinaldo, CEO of The M&A Advisor, to be a lack of growth in deal activity.

There have been various concerns that have keep mergers and acquisitions at a constant rate.  The businesses in place to make such deals are often looking for smaller businesses to add value to their companies without costing a lot of money.  There are also overwhelming concerns in the economy which could be a cause for stagnant purchasing.  The looming “fiscal cliff” and the tax increases set for the end of the year have companies waiting for what will happen.

The opportunities to acquire or sell a business are out there, it is a matter of finding the deals that will enhance your company.  The missing piece is having a business attorney who has experience in determining the value of a business, including assets, liabilities and outstanding tax liabilities.  If you are looking to purchase or sell a business, contact a skilled business lawyer in Naperville.