Investor Presentaiton
D. Acquisition
There are several types of acquisitions. To keep this Guide simple, three
types are described here: strategic single acquisition; strategic multiple acqui-
sitions; and the "roll up."
Strategic Single Acquisition
Investor acquires all or a controlling portion of a single US company and
expands that US company to grow revenue and market share. Sometimes key
assets of a company will be acquired instead of the whole business, in what is
called an "asset acquisition." The assets are typically transferred into an entity
specially formed to hold such assets as a separate business enterprise.
Pros
Focusing on one company is
less complex and may not be
expensive.
Investor may use this as the
chance to get an introduction
to the US market.
Investor gains an operating
business from day one.
Cons
■The single US company may be
limited in its business scope and
growth potential.
Investor may be taking on the
problems of existing business.
Changing the corporate culture
of the target to conform with
Investor's other operations
may be difficult.
■Revenue potential may be limited.
Guide to Investing in the Freight Transportation and Logistics Industry in the United States
17View entire presentation