FOR IMMEDIATE RELEASE:

Kansas City merger-and-acquisition activity makes a comeback in 2010

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Overland Park, KS, July 21, 2010 - Mike Saxton, Chief executive Officer of Business Transition Specialists LLC (BTS) was quoted by the Kansas City Business Journal in an article entitled “Kansas City merger-and-acquisition activity makes a comeback in 2010 - More cash, confidence drive increase in deals”. A summary of key points are provided below:

Merger-and-acquisition activity in the Kansas City area is on the rise, fueled by strong corporate buyers flush with cash looking to build their businesses through acquisition.

  • A report on Kansas City-area M&A activity shows 61 publicly announced deals in the first half of the year, up from 50 in the first half of 2009.
  • Many corporate buyers are well positioned to grow through acquisition. They appear to have record levels of cash and interest rates to help finance acquisitions are extremely low.
  • Growth otherwise due to the weak economy has been lower so corporate acquirers are more readily seeking the more expedient approach of growth through acquisition.
  • Optimism and consumer confidence continues to increase and buyers are starting to move more aggressively, realizing other buyers may also be pursuing their best acquisition targets.

Mike Saxton, CEO of Overland Park-based Business Transition Specialists LLC was quoted saying he “expects activity in the local M&A market to increase in the second half of the year”. He said there are more companies recognizing opportunities to buy a competitor at a time when there is more market stability and prices are depressed. That is combined with a growing number of business owners looking to exit before personal and corporate tax rates most likely will increase in 2011. “It just happens that more companies are ready to sell now,” Saxton said. “In many cases, they recognize the advantage of teaming up with a more established player that could help them skip ahead of some competitors quickly, as opposed to getting financing and taking the risk and time necessary to build new infrastructure themselves.” And while competitors are often the least attractive acquirer, a host of companies are redefining themselves and in market they’d not previously ventured into. For help defining and executing your acquisition growth plans, contact Business Transition Specialists LLC.

For more information see Acquisition Growth Strategy.