Cash of US non-financial companies has reached $1.9 trillion, a 10 percent increase from 2016, and it is estimated that $1.1 trillion will return to the US if a tax holiday is granted under the Trump administration. Alexander Lee, a leading Tax Attorney and Partner at McDermott Will & Emery, recently commented on this topic […]

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Instead of investing in growth, companies this year have been holding more than $1.4 trillion in cash – close to a record $1.65 trillion in 2014. Oracle’s $56 billion cash stockpile is 1.5 times its sales and Cisco’s $60 billion in cash is 1.2 times its sales. Eleven companies have cash reserves double their annual […]

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There’s no denying it that M&A is on fire. Look at any financial newspaper headlines and you’ll see announced deals or merger talks. And keep in mind for all the major transactions involving publicly held companies there are many smaller, privately held transactions occurring unannounced. We can better understand this current wave of activity and […]

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For the last couple of years, corporate America seems to have been playing it safe when it comes to growth. Currently U.S. corporations are holding on to a record $1.65 trillion in cash. Are you in a similar position, perhaps? Cash may not be your “security” blanket but you may be unwilling to take the risks […]

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The ability to move quickly can be crucial in successfully closing a deal. A large part of that means having financing ready so you can swiftly respond to the seller’s decision. I was reading a post about Steve Ballmer’s $2 billion acquisition of the LA Clippers that illustrates why having your financial package prepared is […]

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Yesterday, Apple sold $17 billion in debt offering to investors, the largest corporate-bond deal in history. Apple’s first debt-offering in over 20 years is part of its plan to return $100 billion to shareholders by the end of 2015. This plan is a response to pressure put on Apple to use their excess cash hoard […]

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The housing market is abuzz with cash buyers who seek bargains and don’t want the delays and hassles of securing bank financing. There are several advantages of paying all cash – you can generally get a lower price from the seller because the risk of the deal falling through is lower and the buyer can […]

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Dell and HP are fighting each other to have 3PAR’s hand in marriage. It all formally started on August 16th with Dell attempting to acquire 3Par for  $18/share. Then on August 23rd, HP entered the race and raised the ante to $24/share.  On August 26, Dell raised its offer again to $24.30/share for an enterprise […]

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Over and over on this blog, I have strongly advocated external growth to complement organic growth.  Today the largest 500 non-financial American firms have nearly $1 Trillion in cash and short-term investments on their balance sheets.  That’s Trillion with a ‘T’! This represents roughly 9.8% of their assets.  What does that tell me?  Companies are […]

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The M&A statistics for the third quarter of 2009 are in and show the vast majority of the deals getting done are strategic.  The economic crisis and concerns over deal financing continued to significantly hold down the number and value of deals when compared to the same period last year.  Today, a Wall Street Journal […]

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Back in December, I noted (and agreed with) one author’s proclamation that in the current economy, the balance of power in M&A has shifted from sellers to buyers.  The main reason:  With the credit market in a crunch, cash is king, and cash-rich companies hold a distinct advantage. As these survey results show, this trend […]

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