It must send a chill down a CEO's spine upon discovering that your company requires another $33.9B to cover potential shortfalls in a worst case scenario forecast. Bank of America's stress results point to some very serious miscalculations by corporate leadership, but also highlight the importance of up-to-date analysis and tactical course … [Read more...]
May
07
When Two Companies Meet
Relationships are tenuous when you're just getting to know someone. Neither party is really sure what to expect, or more accurately, what's real and what just looks good. Then you move in together and find out. Toothpaste left in the sink; clothes on the floor; smells you never experienced. Something pretty meaningful has to be there to help … [Read more...]
May
05
Thresholds Make The Deal
When it's a quiet day in the financial papers you know deals are brewing. Today it was reported that U.S. buyout group TPG looked at 140 leveraged buy-out deals in the past few months and didn't agree to any of them. Snore. Fiat is running into resistance on its plan to create a giant European car group. No kidding. This is not the real news, this … [Read more...]
May
01
Where Are All The Margins Going
Last year the construction industry made really good money. This year not so much. Projects are delayed. Some cancelled. Housing, well, that's in a quandary with more resell product available in North America, particularly in the U.S. at foreclosure pricing. I've spoken with a couple of smaller players who tell me they are quite content to lay low … [Read more...]
Apr
30
Invest High Interest Credit Where It Counts
When it's a matter of life or death, corporately speaking, would you borrow expensive money? The added pressure of managing the business with increased debt and high monthly payments doesn't always make it easier to sleep. At this stage it's critical to evaluate the impact of carrying charges against the time new credit gives you to implement a new … [Read more...]
