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Earlier this year I wrote two pieces on expectations and thoughts related to why being a business buyer or a business seller were again beginning to make sense. I also discussed some general wisdom as to how to be either a good buyer or a good seller. As referenced in those pieces, an early year survey of more than 800 senior corporate executives worldwide conducted by Ernst & Young Transaction Advisory Services and the Economist Intelligence Unit provided a strongly optimistic view of expected corporate merger and acquisition activity through the 2010 year. (more…)

There are nearly as many reasons for the owners of a business to sell their business to another entity as there are unique businesses out there. Typically, the reason for considering a sale or a merger relates to harvesting the value of many years of hard work and personal sacrifice. Somewhat related reasons may involve either the unwillingness or the inability to effect management or family succession. Or, in today’s ever more volatile business environment, an owner may want to sell a business prior to the realization of future capital gains tax increases. It is important to understand that it may never be an optimal time to seek a sale if your business or the industry is struggling. As is the case in so many elements of life, “the cream rises to the top” and today’s acquirers are seeking the “cream,” not the spoiled milk. (more…)

As spring actually starts to turn to summer after a wet and cold winter, signs of confidence are popping up everywhere for renewed growth, development and expansion opportunities by companies in many different business sectors. A recently reported 2010 survey of more than 800 senior corporate executives worldwide, the Capital Confidence Barometer conducted by Ernst & Young and the Economist Intelligence Unit, found that 57 percent (57% versus 33% six months earlier) of businesses say they are likely or highly likely to acquire a rival in the next 12 months. Fully 47 percent (47% versus 25% six months earlier) of businesses indicate they expect to reach an acquisition or merger deal within the next 6 months. That appears to be a lot of renewed business opportunity and strategic development thinking at work. (more…)

In his blog post The Case For The Fat Startup, Ben Horowitz of Andreessen Horowitz argues against the conventional, post-bubble wisdom that you have to be lean and mean to survive and prosper in the start-up race. Citing his credentials as CEO of Loudcloud/Opsware, he makes the case for outspending your competitors during the downturn.

My favorite quote: “But in a bust, having a lot of cash can be a huge competitive advantage because you can use that cash to put enormous pressure on your underfunded competitors.” Amen to that. (more…)

In the last post, I discussed the different types of non-operating entities that may acquire intellectual property. In this post, I will talk more about the different strategies these entities pursue and what implications that may have for a technology start-up. (more…)

In connection with our restructuring services, our firm recently sold certain assets of a fabless semiconductor company. The sale included physical assets as well as intellectual property (“IP”). As can be expected from technology companies with significant expenditures on research and development, the majority of the value was embedded in the intellectual property: the design database and the patents.

The project reminded me of how much the landscape of acquirers of IP has changed in recent years as the market for buying, selling, and licensing IP becomes more mature. There are a host of different players with very distinct interests and operating models. (more…)