Why Private Company Owners Sell to Multinational Corporations

Written by William Cate


Why Private Company Owners Sell to Multinational Corporations By William Cate July 2004 [http://home.earthlink.net/~beowulfinvestments/] [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]

Your multinational corporation's mandate is to buy private companies. You want to build your public company's revenues to US$100 million/year. Then, you'll sell it to a stronger multinational corporation.

Why would any private company owner want to sell their private company to your multinational corporation? Why would any owner of a private company accept publicly traded shares for their assets? The answer is simple. You are offeringrepparttar sellersrepparttar 112439 best possible price and terms for their private company.

You Are Paying a Multiple ofrepparttar 112440 Value of their Private Company's Balance Sheet Value

Assuming that 75% ofrepparttar 112441 private company sale was in publicly-traded shares,repparttar 112442 sellers received anywhere from 75% to 150% more for their company than they would selling to another private buyer. On average, you are offering twice as much money forrepparttar 112443 private company as other buyers.

You Are Payingrepparttar 112444 Seller in U.S. Dollars

The American Dollar is one ofrepparttar 112445 five world currencies. It's freely convertible into any other currency. It's accepted almost everywhere inrepparttar 112446 World. The national currency, used by a private buyer, is often only acceptable inrepparttar 112447 country ofrepparttar 112448 buyer and seller.

The Seller Can Be Paid Anywhere inrepparttar 112449 World

Subject to local laws,repparttar 112450 seller can be paid anywhere inrepparttar 112451 world. This means they can accept payment in a country that doesn't tax foreign-source income.

The Owner Hasrepparttar 112452 Option of Working forrepparttar 112453 Multinational Corporation.

Selling a private company doesn't necessarily mean retirement forrepparttar 112454 owner. It can mean managerial involvement inrepparttar 112455 multinational corporation.

The Hawk and the Mouse - Retirement Saving

Written by Kemberly Wardlaw


There once was a hawk, ferocious and swift. He was young and agile with many years of life to huntrepparttar open ranch lands. In a nearby field, a mouse scurried aboutrepparttar 112438 ground. The hawk sawrepparttar 112439 hurried motion and swept speedily towardrepparttar 112440 rodent.

Just asrepparttar 112441 hawk's shadow engulfedrepparttar 112442 smaller rodent,repparttar 112443 mouse fell to its back and begged, "Please, Mr. Hawk, spare me my life!" This surprisedrepparttar 112444 hunter and he landed besiderepparttar 112445 mouse.

"Why should I spare your life? I am hungry today."

"It's always about today, isn't it?" answeredrepparttar 112446 mouse. "Do you ever think about tomorrow?"

"Tomorrow? Well, that's just another day to flap my wings. I will eat then, too."

The mouse scratched his chin and replied, "But one day you will be old and gray. You will have chiseled claws. You should prepare forrepparttar 112447 future now or starve later."

"I do, I do. I am building a grand nest as we speak. You see, I fly low torepparttar 112448 highway's hot pavement in search of lost dollar bills everyday. I find a dollar a day and add it to my nest. I am constantly constructing my nest egg."

The proud hawk looked towardrepparttar 112449 mouse for a reply. The mouse shook his head and stated, "I will make a deal with you, hawk. If after fifty years, you have saved more money than me, not only will I give myself up for your feast, I will lead every mouse in this field to your nest."

The hawk did not take long to considerrepparttar 112450 proposition. He knew he could cover more ground flying thanrepparttar 112451 mouse could crawling. He would be able to locate twice as many lost dollar bills and thus build a much larger nest. The hunter concluded that in fifty years, he would have a great feast.

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