I'm often asked: "What is attractive to you as a buyer?" Some thoughts:
· History of earnings growth
· Potential for continued earnings growth (notwithstanding this, we do find distressed companies to be, in certain circumstances, attractive acquisition candidates).
· History of reinvestment in the business rather than stripping out all earnings (i.e., capex has not been delayed).
· Good customer base and potential to grow sales at each
· Strong management team
· Good employees
· Reputation in the marketplace
Again, in the current economy, we have been and will continue to make acquisitions of distressed companies so it is important for owners to realize that we might have an interest in their business even if some of the above criteria aren’t satisfied.
About Me
- Jim Cohen
- Graduated from Princeton University with honors in 1986. Law degree from New York University. Began career at Morgan Stanley in New York as a financial analyst. Practiced M&A law in New York and London before becoming a partner at a Houston based private equity fund focused on industry consolidations. Joined Consolidated Graphics in 2005 as EVP - Mergers & Acquisitions and has led the company’s very active acquisition program since then. Inducted into the NAPL's honorary Soderstrom Society in 2009. Member of board of directors of Electronic Document Scholarship Foundation. Chairman, Princeton Alumni Schools Committee (Houston).
