Leveraging more 40 years of experience in the merger and acquisition (M&A) industry, Linn Crader currently serves as the president of Business Transition Services, Inc. located in Lake Oswego, Oregon. With Offices in Newport Beach California, Santa Monica California, Bellevue Washington and Irvine California. With a well-developed network of professional contacts, Linn Crader serves clients by focusing on market factors and Compelling Strategic growth plans.
Research by Intralinks has identified six measurable factors which can be used to predict the likelihood of a company being acquired; these factors include growth, size, profitability, liquidity, leverage, and valuation. Acquired (target) companies demonstrated a higher (2.4 percent) growth rate than non-target companies, and, not surprisingly, both public and private target companies were more profitable than their non-target counterparts, 1.7 percent, and 1.2 percent respectively. The area which showed the most significant difference between target and non-target companies was leverage; private target companies had three times more leverage than private non-target companies.
Where public and private target companies differ is in size; private target companies were larger than private, non-targets, while public target companies were smaller than public non-targets. Additionally, the target companies studied had lower levels of liquidity than non-targets, and lower valuation multiples as well.