Cash at Corporations. Save or Spend?

Companies are currently sitting on more cash than at any other time in the last 50 years. Cash and other short-term assets now account for 7% of all assets at non-financial US companies. If you exclude finance firms, US companies held $1.8 trillion in cash and short-term assets at the end of the first quarter, which is 26% higher than the same time last year and represents the biggest increase since the Federal Reserve started tracking cash levels in the 1950s. According to a recent CFO magazine survey and article, companies within the CFO Midcap 1500 (companies with $100 million to $1 billion in annual sales) are holding 15% more cash in 2010 than the same period two years ago.

Non-Compete Agreements: 15 Year or Accelerated Amortization?

Before, during and after any business acquisition, there are many variables to consider, one of which is the tax implication of the sale from both the buyer’s and seller’s perspective. In this case, we are talking about the treatment of intangible assets.

Bank Lending Troubles – Continued Uncertainty

According to a recent article in CFO magazine, the Bank for International Settlements, "the bank for central banks," issued its annual report published Monday. The article "Banks Not Out of the Woods" highlighted several points about the state of banks in the US:

Working Capital Needs: Bust to Boom

According to a recent CFO Magazine report, 2009 was one of the worst years ever for working capital performance, as companies were slow to adjust to the recession. Reviewing the 1,000 largest US public companies, average days working capital (DWC) jumped 8% in 2009 to 38 days, from 35 days in 2008. In round numbers, receivables were 10% higher in 2009, matched by an 11% increase in days payable. Coupled with companies replenishing inventories after 2008 and those holding unsellable product in 2009, days inventory outstanding (DIO) rose by 9%. This may not sound much, but further down the line to smaller privately held companies, less efficient financial management can exacerbate the problem.

Bank Lending in Doldrums and May Stay That Way

For the last 18 months, ClearRidge has published reports projecting that business lending will continue to worsen long after the end of the recession. History shows that to be true after every recession in the last century.

Mergers & Acquisitions Report and Outlook Q1 2025

Posted by Matthew Bristow in Corporate Finance, Mergers & Acquisitions
In 2024, the U.S. mergers and acquisitions (M&A) landscape experienced a notable resurgence, setting the stage for continued growth in 2025. Deal Volume and Value: Through September 2024, both private equity and corporate M&A deal volumes increased by 17% year-to-date compared to the prior year. Despite this uptick, momentum decelerated later in the year due to elevated uncertainty, in part related to the outcome of the presidential election. In 2025, consensus among analysts is for a ...

O.E.M. MANUFACTURING AND SALES acquired by a Strategic Buyer

Posted by Matthew Bristow in Corporate Finance, Mergers & Acquisitions
OEM manufactures and supplies components and sub-assemblies to vendors of many of the world’s largest brand name original equipment manufacturers. The Strategic Buyer is a U.S. manufacturer and supplier with over 50 locations across the United States. The Strategic Buyer determined there was a strong fit with their strategic growth goals and the opportunity to capture OEM’s customer base, their manufacturing relationships in SE Asia and further expand operations through OEM’s foreign trade zone. OEM engaged ClearRidge to advise on acquisition strategy, manage the sale process and due diligence.
OEM_ClearRidge_Acquisition

Innovex completes acquisition of Downhole Well Solutions

Posted by Matthew Bristow in Corporate Finance, Mergers & Acquisitions
Innovex International, Inc. (NYSE: INVX) ("Innovex"), a leading provider of products and technologies to the oil and gas industry, has completed the acquisition of the remaining equity ownership of Downhole Well Solutions. DWS engaged ClearRidge to advise on acquisition strategy. The ClearRidge team managed the process and due diligence.
DWS Innovex ClearRidge

Heater Specialists Acquires ParFab Industries

Posted by Matthew Bristow in Corporate Finance, Mergers & Acquisitions
Heater Specialists, a fully integrated single-source manufacturer of refinery and petrochemical equipment, acquired the fabrication business of ParFab Industries in Inola, Oklahoma. ParFab Industries is a wholly owned subsidiary of the ParFab group of companies. HSI is a wholly owned subsidiary of Energy Process Technologies, Inc. (“EPTI”). ClearRidge advises EPTI and HSI's Management team and Board on acquisition strategy. In this acquisition, the ClearRidge team advised on financial and business matters, managed the process and due diligence.
Heater Specialists Acquires ParFab Industries

U.S. Pioneer acquires Comsaco

Posted by Matthew Bristow in Mergers & Acquisitions
Comsaco has been acquired U.S. Pioneer. They are both leading manufacturers of shipboard electrical components and equipment, serving the shipbuilding industries and the Navy. US Pioneer engaged ClearRidge to advise them on their acquisition strategy. The ClearRidge team managed the acquisition process and due diligence. In 2021, US Pioneer expanded to a new ...
US-Pioneer_ClearRidge_Comsaco
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