As companies continue to put out good earnings reports and cash flow lending comes back to life, it appears that mergers and acquisitions are on the rise. As the economic recovery slowly continues, companies are expected to rely increasingly on mergers and acquisitions (M&A) to help drive revenue growth and bottom line performance. As a result of the current recession, US companies are looking for foreign investment to increase capital, labour productivity and gross domestic product (GDP). In this issue of Merrill DataSite's Global Newsletter we hope to provide you with incite into the best practices of due diligence, cross-boarder M&A considerations and how foreign capital invested in the United States raises U. S. GDP.
Be sure to read our Buyer Beware, Seller Beware" - Best Practices in Due Diligence that Yield Long-Term Success white paper, that speaks to today's M&A players and emphasizes the value of preparing their due diligence efforts in advance. Corporate executives interested in the potential of future M&A activities will find this brochure to be a more in-depth examination of best practices to position their company for success.
Life science companies of all shapes and sizes, both public and private, are looking for solutions that will streamline workflow, enhance the due diligence process, provide uncompromised security to protect the company's intellectual property, and help them lower risk, all within the context of addressing their specific business needs. In this informative report, Positioning Your Life Science Product for the Future learn how conducting a “readiness" assessment as a best practice will help organize your team to determine the steps necessary to bring your company or product to market.
The United States has a long history of welcoming foreign investment and, as a result of the current recession, US companies are increasingly looking for that investment. As a general rule, US laws treat US and foreign investors the same. A prominent exception to that rule applies to mergers acquisitions and takeovers that will result in a foreign investor obtaining control of a US business (referred to as “covered transactions") are subject to review by the Committee on Foreign Investment in the United States (CFIUS) if the transaction may involve US national security considerations. If CFIUS determines that a covered transaction may pose a national security risk, CFIUS may impose conditions on the parties to mitigate the risk or refer the transaction to the President who has authority to suspend or prohibit the transaction, or even unwind a completed transaction.
Foreign investment increases the amount of capital—equipment, buildings, land, patents, copyrights, trademarks, and goodwill—in the host economy. The increase in the quantity and quality of tools for labor's use in converting one set of goods (labor and other inputs) into another (finished output) raises labor productivity and GDP. Because about two-thirds of GDP goes to labor as wages, salaries, and fringe benefits, rising output means higher wages or more employment. Thus, foreign investment raises labor productivity, income, and employment. Workers are better off with more capital than with less and are usually indifferent to the nationality of the investor.
About Merrill DataSite
Merrill DataSite™ (www.datasite.com) is a comprehensive virtual data room (VDR) solution that accelerates the due diligence process by providing a secure online document repository for confidential time-sensitive documents. Merrill DataSite overcomes the many limitations of a traditional paper data room by enabling companies to present critical business information to multiple prospective buyers in a secure Web-based environment. As a result, transaction time and expense are dramatically reduced. Merrill DataSite can be rapidly deployed and is accessible by viewers throughout the world via the Internet. As a leading provider of VDR solutions worldwide, Merrill DataSite has empowered nearly 2 million unique visitors to perform electronic due diligence on thousands of transactions totaling trillions of dollars in asset value. Merrill DataSite is the first VDR provider to understand the customers’ and industry's need to provide the highest level of security by obtaining an ISO/IEC 27001:2005 certificate of registration, setting the standard as the world's only VDR certified for operations in the United States and Europe.