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Listed companies can make great buyers


Listed companies can make great buyers

By , February 18, 2014

Yesterday Amcor announced a 21 per cent increase in 1/2 year profit ( to $326 m ) , but even more interestingly the CEO Ken MacKenzie advised that the company had up to $2B of acquisitions on its hit list.

“There are currently 20 names in the pipeline worth $2 billion, but we won’t pull the trigger on all of those … we’ve had a good track record ( buying businesses ) in the last four years or so , but it’s not growth for growths sake – it is value creation for shareholders… We are very disciplined and have strict financial criteria for a 20 per cent return on investment ( ROI ) three years after the acquisition”

Listed companies are great strategic buyers – but they are “fussy” they will not buy businesses which are dependent upon the owner or poorly managed – we are currently working on three deals with listed companies as buyers – they will pay good money for good assets !

Craig West

Craig West

Managing Director | Succession Plus

Craig West is a strategic accountant who has over 20 years’ experience advising business owners. His background as a CPA in public practice, provided invaluable experience in the key issues of concern to business owners. Following 6 years of study to gain two masters degrees, Craig focused on Capital Gains Tax (CGT) for business sales advising on strategic management of tax issues. This experience formed a very strong view that business owners (and often their advisers) were unprepared and unaware of the steps required to prepare a business for exit.

Craig now acts as a strategic mentor for mid-market business owners and has written four critically acclaimed books on employee incentives, succession planning, asset protection and exit strategies. Craig has conducted numerous seminars and keynote presentations throughout Australia & internationally, including adviser education programs for the Institute of Chartered Accountants and CPA Australia.