Valuations & Acquisitions: Dealing With an October Surprise

So while lending remains nonexistent and the credit markets have all but dried up, what’s a business in need of capital to do? There are a few options. It all begins with a little creativity.

Find Viable Alternatives
An alternative to outright sale is a sale in disguise. A larger company may buy a significant stake in the smaller marketer with the understanding that the latter has to meet certain goals within a specific time frame. If the cataloger meets the goals, it has to pay back the larger company for its investment. If it doesn’t meet the goals, the larger company takes majority control of the business. For his part, Helman doesn’t see this happening anytime soon.