Dear Clients, Colleagues and Friends:
I thought I would provide you with a quick update on Farrell Advisory as we move into the last quarter of 2017 with great optimism albeit with turbulent political conditions and disruptive technologies entering ever-increasing number of sectors.
In the face of such upheaval and uncertainty, both domestically (in terms of the U.S. Administration’s difficulties to pass quickly important legislation, including tax and healthcare reform and trade policies, and the impact of ecommerce on brick retailers); and internationally (in terms of the impact of Brexit on the E.U.’s prospects for growth and post trade policies, European migration issues, risks from North Korea and Middle East (Qatar and Iran), credit growth in China, and central bankers changing views on quantitative easing), it would be natural to expect M&A activity to be under pressure.
However, I am delighted to report that good domestic businesses continue to be sold at excellent prices, partly due to the continual supply of cheap debt and the desires of buyers to offset some poor organic growth and low returns from surplus cash, but low performing, especially small, companies continue to sell poorly and slowly, if at all. The exception to this generality are governments’ measures to scrutinize international consolidations (e.g., for competition, national importance and tax inversion related issues) and the scaling back from Chinese buyers. These trends continue to tell us the real importance and benefit of adequately preparing big and small businesses (and management) for sell and that public approval from all stakeholders, including senior management and key customers, is now essential for all M&A deals to be successful.
Farrell Advisory’s Focus on Corporate Finance on Small to Medium Sized Companies Leading to Growth
Since our last update, Farrell Advisory has continued to win ever more increasing complex/international M&A (e.g., preparing government contractors for sell and for raising minority equity investments, several formal due diligence projects in multiple industries, earn-out and working capital disputes, and advising on two franchise start-ups) and restructuring/refinancing non-performing companies (e.g., athlete wear retailer) engagements.
Farrell Advisory continues growing its main lines of business:
Further details at the firm’s website (www.farrelladvisory.com).
If we can be of any assistance, even on an informal basis, with regards to Buy-Side, Sell-Side and Restructuring engagements, to you or your clients, please let me know.