Login Sign up

100 Best Companies to Work For (2010)

17th Jul 2010 , 09:20 PM (0) comments
Top 100
Rank Company Job
growth
U.S.
employees
1 SAS 2% 5,487
2 Edward Jones 8% 37,079
3 Wegmans Food Markets 0% 36,770
4 Google N.A.% N.A.
5 Nugget Market -16% 1,342
6 DreamWorks Animation SKG 13% 1,825
7 NetApp 0% 5,033
8 Boston Consulting Group 3% 1,737
9 Qualcomm 3% 12,255
10 Camden Property Trust -6% 1,743
11 Robert W. Baird & Co. 6% 2,286
12 Bingham McCutchen -7% 1,859
13 W. L. Gore & Associates 5% 5,764
14 Recreational Equipment -6% 8,640
15 Zappos.com -21% 1,300
16 Cisco 0% 37,276
17 Methodist Hospital System 6% 11,145
18 Whole Foods Market -9% 47,478
19 Genentech 2% 11,146
20 Devon Energy 4% 3,912
21 NuStar Energy 4% 1,375
22 Johnson Financial Group 1% 1,316
23 Umpqua Bank 8% 1,836
24 Goldman Sachs Group -13% 12,243
25 Novo Nordisk 10% 3,360
26 CHG Healthcare Services -12% 1,142
27 Scottrade 22% 2,409
28 JM Family Enterprises -18% 3,772
29 Quicken Loans 0% 2,893
30 Alston & Bird 7% 1,842
31 PCL Construction Enterprises -10% 3,970
32 Baptist Health South Florida 11% 11,729
33 Shared Technologies -21% 1,243
34 Chesapeake Energy 20% 7,720
35 American Fidelity Assurance Co. -1% 1,502
36 Container Store -9% 3,233
37 Aflac -3% 4,353
38 Scooter Store 51% 2,173
39 TDIndustries 7% 1,588
40 Scripps Health 15% 11,444
41 QuikTrip 5% 10,311
42 Adobe Systems -4% 4,065
43 Salesforce.com 21% 2,361
44 Ernst & Young -4% 24,815
45 USAA -1% 21,999
46 OhioHealth 3% 12,128
47 J. M. Smucker 44% 4,521
48 FactSet Research Systems 9% 1,322
49 Mercedes-Benz USA 0% 1,612
50 King's Daughters Medical Center 7% 3,263
51 Microsoft 2% 54,923
52 Booz Allen Hamilton 13% 21,303
53 Nordstrom -8% 45,853
54 Paychex 2% 12,456
55 Mayo Clinic 0% 41,839
56 CarMax -16% 13,030
57 DPR Construction -2% 1,142
58 Four Seasons Hotels -9% 12,345
59 Monsanto 5% 10,772
60 Indiana Regional Medical Center 3% 1,200
61 Brocade Communications Systems 39% 2,873
62 Kimley-Horn -19% 1,808
63 Southern Ohio Medical Center 8% 2,286
64 Stew Leonard's -6% 2,037
65 Arnold & Porter 1% 1,295
66 Plante & Moran 1% 1,547
67 EOG Resources -4% 1,725
68 Men's Wearhouse -9% 14,764
69 MITRE 2% 6,572
70 Deloitte 1% 39,065
71 PricewaterhouseCoopers 1% 29,387
72 McCormick and Company 2% 2,799
73 American Express -10% 27,265
74 Children's Healthcare of Atlanta 13% 6,536
75 Perkins Coie -3% 1,680
76 Balfour Beatty Construction -12% 1,514
77 Baker Donelson -1% 1,127
78 Mattel -9% 5,293
79 Meridian Health 12% 7,099
80 Build-A-Bear Workshop -14% 4,588
81 Atlantic Health 2% 7,114
82 Marriott International -10% 110,091
83 S. C. Johnson & Son 0% 3,343
84 Accenture -7% 30,000
85 Arkansas Children's Hospital 8% 3,733
86 Publix Super Markets 2% 139,578
87 National Instruments 2% 2,568
88 KPMG -7% 20,972
89 Bright Horizons 0% 14,497
90 General Mills -2% 16,681
91 FedEx -4% 218,770
92 Gilbane -11% 1,934
93 Starbucks Coffee -27% 116,357
94 Intuit -7% 6,710
95 Orrick Herrington & Sutcliffe -8% 1,481
96 LifeBridge Health 5% 6,350
97 Herman Miller -8% 5,186
98 Intel 0% 43,905
99 Winchester Hospital 4% 2,027
100 Colgate-Palmolive 2% 5,366
From the Feb. 8, 2010 issue
Notes:
N.A.: Not available. U.S. employees includes part-timers as of time of survey. Job growth, new jobs, and voluntary turnover are full-time only. Revenues are for 2008 or latest fiscal year. All data based on U.S. employees.
* Average annual pay: yearly pay rate plus additional cash compensation for the largest classification of full-time salaried and hourly employees.

Top Business Ideas for 2010

17th Jul 2010 , 09:18 PM (0) comments

Over the holidays, we reviewed all of the smart new business ideas we covered in 2009, and selected 10 that we believe will provide entrepreneurs with plenty of opportunities in 2010. Needless to say, it was a huge challenge to pick just 10 from such a wide range of innovative concepts. We hope you'll find our selection as inspiring as we did!

1. Small-scale food production using membership models

The past year or two saw a huge increase in innovative, upscale mobile food purveyors working from trucks and selling everything from premium ice-cream to Korean BBQ tacos. Requiring an even lower investment, the next wave could be small-scale culinary subscription services, which allow fledgling entrepreneurs to get a foothold in the food business, and create a steady income and a loyal client base for future business activities.
Milk Made »Dulcinea »

2. Low impact advertising

Realising that green concerns are here to stay, British media agency Curb offers nothing but low-impact advertising. Its first service used rainwater to clean logos into grubby pavements, and was quickly followed by other techniques that use sand, sea water, grass, glow-in-the-dark funghi and more to broadcast their clients' messages in an earth-friendly manner.
Curb »

3. Health tracking devices

From wireless headbands that track sleep patterns to wearable gadgets that track every move, an increasing number of options is available for people who want to track their own health-related behaviour. Recording and relaying detailed information that was previously only available through medical monitoring, most of these devices aren't yet available worldwide, which creates a host of opportunities for distributors and localized versions.
Zeo »Fitbit »DirectLife »TheCarrot.com »Bedpost »

4. Sample stores, cafes & vending machines

Sophisticated sampling—dubbed tryvertising by trendwatching.com—isn't new. On the rise, however, are dedicated spaces that facilitate sampling by a variety of brands, attracting consumers through the irresistible offer of free goods. Following sampling stores in Spain, sampling cafes in Tokyo and sample vending machines in Belgium, we suspect this concept will spread even further in 2010.
Esloúltimo »L CAFE »Boobox »

5. Discreet rooftop solar panels and wind turbines

While most homeowners would in theory like to generate their own wind or solar power, many are put off not just by cost, but by the aesthetic impact of wind turbines and solar panels. Aiming to resolve that problem are smart engineers who are creating new options that blend in with their environment. Two promising examples: rooftop wind turbines that almost disappear along the apex of a sloping roof, and solar panels shaped like traditional clay roof tiles. Plenty of opportunities here over the next decade, both in distribution and in the development of similar products.
Solé Power Tile »Ridgeblade »

6. Rotating retail at airports and in malls

Pop-up, temporary retail is still going strong, but a new alternative has entered the game: rotating retail. Two spottings: opening soon in Glasgow Airport is Planeshop, a permanent store that brands will take over for a limited time, including changing the shop's exterior graphics to match their identity. And in the Netherlands, BrandNew Stores aims to turn those fleeting pop-up shops into a chain concept, creating fixed spaces where brands can temporarily present themselves in a regular retail environment.
Planeshop »BrandNew Stores »

7. Remote farming for consumers

According to Wikipedia, farm simulation game FarmVille has become the most popular game application on Facebook with 73.8 million active users in January 2010. Offering consumers a way to remotely control a patch of land that will actually provide them with an edible harvest is a new Italian start-up: Le Verdure Del Mio Orto, which lets anyone build an organic garden right from their web browser. As the produce grows, it's picked and delivered to the customer's door within 24 hours. Weekly deliveries are part of the package.
Le Verdure Del Mio Orto »

8. Connecting creative consumers with local fabricators

A partnership between New Zealand-based Ponoko and North Carolina-based ShopBot Tools, 100kGarages is a community of workshops distributed around the world that are equipped with the digital fabrication tools needed to precisely cut, machine, drill or sculpt the components of virtually any creative project. The network allows designers or consumers turn their ideas into physical products, and creates new business for small workshops.
100kGarages »

9. Paying consumers to promote products they use and love

As our sister-site trendwatching.com pointed out in its sellsumers briefing, selling is the new saving: a recession-induced need for cash plus an ever-growing infrastructure are fueling concepts that help ordinary consumers make money instead of spending it. One of the easiest ways to do so is by taking on the role of marketeer for products they already use and love: from promoting concerts by their favourite bands, to helping small companies launch new products.
Hollrr »People's Music Store »Posse »Looklet »

10. Single-use toilet bag turns human waste into fertilizer

While this is a numbered list, we love all of these ideas equally. So, last but not least, a potential solution to a problem that 2.6 billion people have to deal with: no access to a toilet. Designed for use sitting, squatting or standing, the single-use, biodegradable plastic Peepoo bag is lined with a urea-coated gauze layer that disinfects all waste. Used bags are odour-free for at least 24 hours and are safe for burial underground. Within two to four weeks after use, their contents are converted to high-quality fertiliser—something that's also rare in many areas and could become a source of income and further enrichment for individuals or villages.
Peepoo bag »

Smart Business Online, a good place to follow som..

03rd Jul 2010 , 08:33 PM (0) comments

Smart Business Network is the nation's fastest-growing publisher of local management journals, under the Smart Business name. We are a family-first company dedicated to providing a flexible work environment for all employees. Smart Business Network has received numerous honors over the years, including being named one of the 99 best companies to work for in Northeast Ohio and being included among the 100 fastest-growing companies in Northeast Ohio. Our company has been featured in the local as well as national press, including the Wall Street Journal and the Washington Post. Smart Business Cleveland has been named the best business publication in the State of Ohio on four different occasions.

Watch a brief overview of " target="_blank">Smart Business.

Smart Business for readers
Smart Business is a management journal providing insight, advice and strategy for C-level executives of fast-growth, middle-market and large companies. Our publications are designed as concise packages that meet the information needs of senior decision makers of these companies. Each edition of Smart Business features a cover story on a high-profile local business or community leader on what makes them successful. Other features include Smart Leaders, providing management thoughts for the CEO of successful middle-market company, and Fast Lane, a quick Q&A with the CEO of a rapidly growing company. In addition, Smart Business partners with leading local service providers to provide expert advice for our senior decision-maker audience. To learn more about our award-winning editorial product, click here.

Smart Business for advertisers
Our publications offer high quality - audited circulation, targeted decision-maker audience with no wasted circulation, four-color printing on quality paper stock - at a significantly lower cost than alternative marketing vehicles. This makes Smart Business the most cost-effective vehicle to reach this audience. Our format assures advertisers that there will be limited competition for their advertising message. Our creative and industry-exclusive partnership programs provide unique opportunities to offer expert content to our highly desirable senior decision-maker audience and will not be found in alternative advertising media. Take a moment to learn more about the reach of Smart Business advertising.

SBN Online
Our website provides one of the most comprehensive databases of articles and interviews with leaders of successful fast-growth, middle-market and large companies throughout the country. There are currently several thousand articles providing best practices and successful management strategies from these business leaders. In addition, the current issue of our local management journals are available online as are archives of past issues.

Smart Business Conferences
In business, there is no substitute for face-to-face contact. That's why Smart Business Network has created numerous conferences to allow executives to gain insight into key business ideas and strategies. The Evolution of Manufacturing conference recognizes Northeastern Ohio manufacturers that best demonstrate how to adapt to the changing world and take manufacturing to the next level. Included in the event is a town-hall discussion featuring a Q&A with leaders in the manufacturing industry. The World Class Customer Service Awards takes service to the next level, recognizing Northeast Ohio companies who take the extra step in the name of customer satisfaction. From large-scale evening galas to more intimate luncheon events, Smart Business conferences draw together the most prominent and influential business leaders in each market we serve.  


Elevation Partners Bought $120 Million In Facebook..

29th Jun 2010 , 04:43 PM (0) comments
http://cfcc.edu/blogs/bookstore/files/2009/09/facebook.jpg
http://topnews.co.uk/27686-elevation-partners-bought-120-million-facebook-stock

An additional five million shares have been acquired by private equity firm, Elevation Partners in Facebook Inc. for $120 million, according to a reliable source. The investment gave the firm a 1.5% stake in the world's largest Internet social network. It was Elevation's second round of investments in shares of Facebook.

Facebook, being one of the world's most popular Web sites, next to established Internet giants like Google Inc. and Yahoo Inc., is closely looked at by investors keen for a blockbuster initial public offering.

About $700 million and $800 million in revenue were generated by Facebook in 2009. The privately held, Facebook has managed to develop a vibrant market for shares in the past year.

Facebook had banned its employees from selling their shares in the company to outside investors, except during particular periods. Presently, its employees would not be permitted to sell shares, as Facebook is not in that period.

The technology blog, TechCrunch, reported the news of funding. Among Facebook's backers are Digital Sky Technologies, Microsoft Corp Corp, Hong Kong tycoon Li Ka-shing, as well as venture capital firms, Accel Partners, Greylock Partners and Meritech Capital Partners.

Elevation Partners will invest up to $100 million in an online review site, Yelp in January. Earlier, the firm invested $460 million in smartphone maker, Palm for a number of years. Hewlett-Packard announced plans to obtain the struggling Palm for an amount of $1.2 billion.

Ten Rules For Negotiating Business Transactions

04th Feb 2010 , 11:02 PM (0) comments

I believe the most effective negotiating techniques for business transactions are slightly different than negotiating tactics used in other contexts. Because business negotiations often involve multiple issues and transactions in which the negotiating parties will have a business relationship following the "closing," the negotiator must follow some basic rules to achieve the best result for himself or herself, while leaving the other party equally satisfied with the results of the negotiations. In other words, in business negotiations, a "win-win" situation is usually a far better result for all parties involved than a "win-lose" situation. This is especially true in the negotiation of a joint venture where the parties will be collaborating in a business endeavor following negotiations. It is also true, for example, in the sale of a business where the buyer will depend on the seller for consulting advice, introductions to loyal customers and continuing support in the community or industry in which the business operates. An embittered seller can do a great deal of harm to the buyer of a business following acrimonious negotiations. With these thoughts in mind, I generally recommend the following to clients who ask how to approach the negotiation of a business transaction:

  1. Be Prepared. The best prepared party generally has the upper hand in negotiations. Being prepared includes (a) clearly developed objectives so that you will know what is important and what can be compromised; (b) learning everything you can about your "adversary" and trying to anticipate what your adversary's objectives will be, the reasons for those objectives, and the anticipated means of achieving them; and (c) anticipating areas of disagreement and designing alternative solutions to resolve areas of disagreement. I often advise clients to carry on initial negotiations without an attorney or accountant present, but well-prepared clients will always have reviewed the elements outlined above with their professional advisors in order to avoid being blind-sided by an unanticipated tax or legal consequence.
  2. Negotiate With the Decision-maker(s). Knowing who will be making the decisions is critical in negotiations. Most of us have witnessed negotiations in which tremendous progress is made, only to learn at the end of the day that the party across the table had no authority and was required to report back to management. Sometimes this is unavoidable, but it is often used as a negotiating tactic, and if recognized it in advance, should generally be avoided.
  3. Get All Issues On the Table Before Compromising. In order to follow your strategy and achieve your objectives, you must know what all of the issues are before compromising on any one of them. It is very easy for the other party to raise seemingly small issues, resolving them one by one on seemingly mutually satisfactory terms, until you suddenly realize that you have been painted into a corner without realizing what was happening. If all of the issues are first put on the table, there is a greater opportunity to prioritize needs and design mutually satisfactory solutions to issues. Furthermore, you are less likely to give the impression that you need the deal more than the other party (which is the one thing you should never do in negotiations).
  4. Be Truthful. It may come as a surprise to learn that there is no substitute for truthfulness and honesty in negotiating business transactions. Bending the truth, providing inaccurate information or even outright lying is sure to backfire sooner or later. If the other party loses confidence in your credibility during negotiations the deal will not occur. If the other party experiences surprises following the closing of a transaction in which inaccurate information was tendered, costly legal entanglements will surely follow. On the other hand, truth and honesty, even when it hurts, will win the trust and confidence of the other party (both during and after negotiations) and will give you more credibility when negotiating serious issues.
    Listen and Look Carefully. Listen carefully to everything the other party has to say. Often one word will give away the other party's hidden agenda in a transaction. Sometimes a facial expression will reveal the other party's true position on a point. I have on more than one occasion had the privilege and good humor of observing the other party's attorney state that his client "would never agree to . . ." while his client's expression was clearly suggestive of the contrary. Generally speaking, the more you can get the other party to talk, the more you will learn (in a subtle way) about the other party's true needs and intentions.
  5. Treat the Other Party With Respect. Always treat the other party with respect, even if you have concluded it is undeserved. If the other party senses hostility, discussions will become strained and highly structured and the opportunity to gain critical information from comfortable discussions will be lost. You will be far more effective holding your true feelings about the other party close to your chest and you will not burn any bridges in the process.
  6. Be Sure Each Party Understands the Other. If the parties have reached an impasse, it is important to review the nature of the impasse while at the negotiating table so that all concerned may be satisfied that the impasse is not by virtue of a misunderstanding. I recall one occasion in which the other party's attorney and I were convinced that there was no middle ground on a particularly important issue. Everyone was frustrated and preparing to leave the room. I suggested that because of the importance of the matter, we should review the nature of the dispute to be sure there were no misunderstandings. As the other attorney and I described our impression of the impasse, my client announced that he had apparently misunderstood our discussion of his rights under an arrangement suggested by the other attorney, and that if his enlightened understanding was correct, he was prepared to agree to the other party's terms. The deal was saved. I suspect many deals are lost through misunderstandings.
  7. Understand Who Needs the Deal the Most. I mentioned this above, but it is so important that it bears repeating. Experience tells me that the party who needs the deal the most will give and give and give again. The other party need give little. If you determine the other party needs the deal the most, enjoy the ride. If you need the deal the most, don't let the other party know. This is why rule number 3 above is so important if you are the party who needs the deal the most. Oftentimes the first party to compromise on an important point is the one who needs the deal the most, but the rule is fraught with so many exceptions that I would never adopt it as an ironclad negotiating principle.
  8. Be Prepared to Compromise. This is why having clear objectives and a strategy is all important. In business transactions a spirit of compromise often leads to advantageous business combinations and opportunities. The key is to know where you can compromise without sacrificing your overall strategy and objectives. Bargaining points are seldom equally important to all parties in a transaction. The key is to sort them out so that each party obtains the benefit its most important issues.
  9. Be Unemotional. One should generally be patient and unemotional in negotiations (although I will admit that there are times when one can advantage through outward impatience and emotion). Nevertheless, the point I am trying to get across here is that one should always be prepared to walk calmly away from the table if his or her objectives cannot be met. One must avoid getting caught up in the excitement of completing a deal for the mere sake of completing it even though it's not workable. On more than one occasion I have seen a party pay too much for a business, only to underachieve earnings expectations or default on bank financing later on. Oftentimes the other party will ultimately compromise on an important point once it learns that it was in fact a "deal killer" for the party that left the table. Remember, no deal is better than a bad deal, so don't be disheartened if another party steps up to the plate and completes a transaction with the party with which you were unsuccessfully negotiating.

By: George F. Eaton II, Esq. is a partner with Rudman & Winchell. He concentrates his practice in the areas of business planning, corporate and securities law.

Dealmaking back in fashion, as CEOs buy growth, by..

01st Feb 2010 , 11:58 PM (0) comments
Attendees are reflected behind a logo at the congress centre of the Alpine resort of Davos, the venue of the World Economic Forum (WEF), January 31, 2010. REUTERS/Christian Hartmann (SWITZERLAND - Tags: POLITICS BUSINESS)

DAVOS, Switzerland (Reuters) - The manic dealmaking of the years before the financial crisis may be some way off, but acquisitions were certainly back on the agenda for the CEOs of many companies attending the World Economic Forum in Davos over the past week.

Deals  |  Davos: China  |  Davos

Savage cost cutting, capital raising and debt refinancing mean that a lot of the more profitable companies now have strong enough balance sheets to be opportunistic if a deal is presented. The debt markets are also open again to help finance deals, and market gains mean their shares can be used as currency in transactions.

Buying growth through purchases may also be more attractive than trying to expand current businesses organically, given concerns about how fast the economies of Europe and the United States will recover this year.

But the CEOs are generally looking for bolt-on acquisitions, not massive deals that transform their businesses.

Take Mike Fries, for example. As chief executive of pay-TV company Liberty Global (LBTYA.O) he is eager to expand beyond the 15 million subscribers Liberty has across 10 countries in Europe.

"We are opportunistic on the M&A front," Fries said. "If something came up that fits us perfectly we would have to look at it."

He said that the strength of high-yield debt markets was fueling such activity. It took less than two days for the company to raise enough money for the $3 billion acquisition of Germany's Unitymedia at the end of last year.

Also in the media sector, Thomson Reuters Corp (TRI.TO)(TRI.N) CEO Thomas Glocer said the company was in a strong position to make acquisitions, thanks in part to its opportunistic refinancing of debt over last summer. Glocer said there was "a ton" of good businesses coming onto the market.

TD Ameritrade Holding Corp (AMTD.O), the second-biggest U.S. discount broker, has been a major consolidator of the industry with 10 deals in about as many years, and its chairman, Joe Moglia, made it clear that was going to continue.

"Literally every day we are trying to look at different opportunities in the market place," he said, and that included eyeing any of its rivals if they come up for sale. "There is probably still some room left in the industry for consolidation," Moglia added.

PLACING BETS

Kraft Foods Inc's (KFT.N) $18.7 billion deal for Cadbury (CBRY.L) was likely to make companies more confident as they consider big deals, said Mark Foster, group chief executive for management consulting at Accenture.

"Cost cutting and responding to the economic realities remains top of mind for companies, but there are some leading companies that are lifting their heads and starting to place bets," he said.

The heads of three of the biggest private equity companies in the world, Stephen Schwarzman, Henry Kravis and David Rubenstein, made it clear in interviews at Davos that they expect to do more acquisitions. They will also be seeking to sell more of their current holdings through initial public offerings or straight sales to companies.

And deals are not just about bankers' fees and executives' egos. They also create business activity, boosting airlines, hotels and restaurants -- as investment bankers, investors, consultants and auditors take to the road.

"The IPO activity and the canceled projects from last year that are being restarted, the negotiations for things coming up have created a pretty spontaneous increase in demand," said Frits van Paasschen, the CEO of luxury hotel chain Starwood Hotels & Resorts Worldwide Inc (HOT.N).

Brazilian and Chinese companies, bolstered by the relative strength of their economies, are also set to make a significant contribution to the dealmaking.

Brasil Foods (BRFS3.SA), Brazil's biggest pork and poultry producer, is looking for ways to expand around the world, said its co-chairman, Luiz Fernando Furlan. The company was only formed last year after Perdigao took over Sadia -- a transaction still awaiting regulatory approval in Brazil.

"We have plans to invest outside, maybe the U.S. and the Middle East and some other places," he said while declining to be specific on particular targets.

PROTECTING STAFF

Former Deputy U.S. Treasury Secretary Robert Kimmitt said the political climate in the United States was positive toward inbound investment by the Chinese and others.

"We haven't seen the barriers to investment -- investment protectionism -- as much as we have seen trade barriers rise," said Kimmitt, who is now chairman of Deloitte's Center for Cross Border Investment.

Still, there are some companies that will not be making M&A fees for the bankers.

Jim Goodnight, the founder and controlling shareholder of business software company SAS, said he would not sell because he fears that a buyer would just gut the company's workforce and culture -- a culture that made it No. 1 in the latest Fortune magazine list of top 100 American companies to work for.

"I am not interested in selling the company because I really like to try and protect the people that work here and one of the first things an acquiring company does is lay off people, terminate people," he said.

Stocks

Liberty Global Inc
LBTYA.O
$26.01
+0.63+2.48%
3:00pm EST
 
Thomson Reuters Corporation
TRI.TO
$36.04
+0.33+0.92%
12:00am EST
 
Thomson Reuters Corporation
TRI.N
$33.92
+0.54+1.62%
3:06pm EST

DAVOS, Switzerland
Mon Feb 1, 2010 2:26pm EST

Small U.S. defense firms back on M&A radar

01st Feb 2010 , 11:55 PM (0) comments

BANGALORE
Mon Feb 1, 2010 2:29pm EST

BANGALORE (Reuters) - Smaller U.S. defense firms are back on the acquisition radar, helped by a renewed interest in surveillance and intelligence -- two key areas that have been attracting federal interest lately.

Deals

The sector is expected to see more deals in the near term than it has in the past three years, as large players, grappling with cutbacks in major defense programs, look to sustain growth by buying smaller rivals in niche areas.

"The industry has consolidated considerably in the last 10 to 15 years and it will continue to do so. Most acquisition targets probably will be in the area of smaller firms," said Tian Qiu, an analyst at Templeton Global Equities Group.

The renewed chatter follows a move by Argon ST (STST.O) to put itself on the block recently -- almost a year after Axys Technologies put itself up for sale, triggering the first round of deal talk. Argon makes sensors for intelligence, surveillance and reconnaissance systems.

"There is a shift in strategy as the government moves away from fighting a large war. Now the requirement is for mission critical technologies and these smaller firms are filling that gap," Broadpoint Amtech analyst Peter Arment said.

Possible targets include X-ray detection system maker American Science and Engineering Inc (ASEI.O), communications firms Comtech Telecommunications (CMTL.O) and Applied Signal Technology (APSG.O), and biometric identification systems firm Cogent Systems (COGT.O), according to analysts.

The rising importance of unmanned war systems puts drone maker AeroVironment Inc (AVAV.O) in focus, while defense training firm Cubic Corp (CUB.N) is a potential target given the infusion of more U.S. troops in Afghanistan.

The possible acquirers include Lockheed Martin Corp (LMT.N), Boeing Co (BA.N), Northrop Grumman (NOC.N), General Dynamics (GD.N), Goodrich Corp (GR.N), BAE Systems Plc (BAES.L), EADS (EAD.PA) and Science Applications International (SAI.N).

According to a recent Reuters Insider report, Boeing could be the frontrunner for Argon ST, given the logic of synergies with the planemaker's 2008 purchase of Digital Receiver Technology, which develops wireless surveillance products for government customers.

Science Applications International is best poised to make a sizable acquisition with $1 billion on balance sheet, and the possible targets could be American Science & Engineering and Cogent Systems, the report said.

AVERTING ANOTHER 9/11

Companies with a focus on homeland security and cyber security have a clear edge in the M&A market, with the U.S. government prioritizing these segments in the wake of the recent security threats.

Homeland security was pushed to the top of Obama's 2010 agenda after a passenger tried to blow up a Detroit-bound flight with a bomb concealed in his underwear on Christmas Day.

"Homeland security is very similar to defense -- you have government as customer," said Philip Finnegan, director, corporate analysis at research firm Teal Group.

"It has the potential to grow even if defense comes under pressure."

L-3 Communications Holdings (LLL.N) has said it plans to buy assets in the intelligence surveillance business this year. Goodrich is interested in areas such as precision-guided weapons, intelligence surveillance and helicopter components.

REASONABLE VALUATIONS

Valuations are becoming cheaper as sellers tend to be more reasonable on their expectations now, analysts said.

"We have seen that most of the defense group in general was out of favor last year, the multiples have compressed," Broadpoint Amtech's Arment said.

Deal valuations in the sector now range from 7 to 11 times forward EBITDA (earnings before interest, taxes, depreciation and amortization), depending on the company.

Companies that have proprietary technologies, are in high-growth areas or have access to customers in the intelligence arena stand on the upper range of the multiples.

For example, Argon ST and American Science & Engineering trade at 11 times forward EBITDA.

Shares of most of these small defense companies, which crashed during slowdown, are beginning to stabilize now. On an average, they have gained 13 percent of their value in the last three months.

Executives at the Reuters Aerospace and Defense Summit in Washington in December said lower valuations will drive mergers in the aerospace and defense sector this year with larger companies spending up to $1 billion each.

"The small to mid-cap defense companies, specifically those with an emphasis on technology, will offer investors the highest probability of upside under the DoD's new philosophy," analyst Michael Ciarmoli of Boenning & Scattergood wrote in a January note.

Stocks

ARGON ST, Inc.
STST.O
$25.91
+0.55+2.17%
3:00pm EST
 
American Science & Engineering Inc
ASEI.O
$79.00
+1.36+1.75%
12:00am EST
 
Comtech Telecommunications Corp.
CMTL.O
$35.54
+0.18+0.51%
3:00pm EST

http://www.reuters.com/article/idUSTRE61053Z20100201 (Reporting by Bijoy Koyitty & Bhaswati Mukhopadhyay in Bangalore; Editing by Saumyadeb Chakrabarty and Anil D'Silva)


EU clears Oracle takeover of Sun

30th Jan 2010 , 07:46 PM (0) comments
By RAF CASERT, Associated Press Writer Raf Casert, Associated Press Writer Thu Jan 21, 9:14 am ET

BRUSSELS – The European Union on Thursday cleared Oracle Corp.'s proposed $7.4 billion takeover of Sun Microsystems Inc., saying it would not significantly affect competition in the EU.

EU antitrust chief Neelie Kroes said one of the year's biggest technology deals of the last year could now go ahead as planned because "competition and innovation will be preserved on all the markets concerned."

Its approval had been uncertain since the commission launched a formal antitrust investigation in September over concerns the combination could harm the database software market.

The U.S. Department of Justice has already approved the transaction and Oracle said in a statement it "expects unconditional approval from China and Russia and intends to close the transaction shortly."

"Oracle's acquisition of Sun has the potential to revitalize important assets and create new and innovative products" in Europe, Kroes said.

Initially, the commission was worried that Oracle, the world's No. 1 maker of proprietary database software, would not fully support Sun's MySQL division, which makes a competing database product, reducing customer choices and increasing cost.

The EU Commission said in a statement that its investigation "showed that although MySQL and Oracle compete in certain parts of the database market, they are not close competitors in others, such as the high-end segment."

It also found that competition could be maintained through other channels.

"The Commission's investigation showed that another open source database, PostgreSQL, is considered by many database users to be a credible alternative to MySQL and could be expected to replace to some extent the competitive force currently exerted by MySQL on the database market," the statement said.

Sun paid $1 billion for MySQL in 2008.

The MySQL database is widely used by Web sites, including Google and Wikipedia, and is the top "open-source" database, which means its programming code is given away for free. Companies make money off open-source software by selling technical support services connected to it.

Sun badly needs the deal to go through. It lost $677 million over the last four quarters and is rapidly shedding market share to rivals like IBM Corp. and Hewlett-Packard Co.

http://news.yahoo.com/s/ap/20100121/ap_on_bi_ge/eu_eu_oracle_sun

In this Jan. 11, 2010 photo,the Oracle Corp. and Sun Microsystems ...
AP
Thu Jan 21, 7:51 AM ET

In this Jan. 11, 2010 photo,the Oracle Corp. and Sun Microsystems Inc. logos are shown on a server, in New York. Oracle Corp. acquired Sun Microsystems in 2009. The European Union on Thursday, Jan. 21, 2010, cleared Oracle Corp.'s proposed $7.4 billion takeover of Sun Microsystems Inc., saying it would not significantly affect competition in the EU.

(AP Photo/Mark Lennihan)

101 Ways to Make Money

29th Jan 2010 , 07:36 PM (0) comments
Every day more and more people are looking for alternative ways to make money, or to earn a living, both in the online and offline worlds people are starting realize that having a “job” and working 40 hours a week for 40 years is not the ideal way to live.

So we have put this site together to outline some alternative ways, that people can go about generating an income, including affiliate marketing, selling ebooks, and even stock market investing. Feel free to explore the ideas on this site, join the discussions under each article or suggest an idea we haven’t thought of yet…
Money Making Idea 1

Online Surveys – Make Money Taking Online Surveys

Every company relies on market research to tell them what people think about their products and what they would be most likely to buy (and why) in the future.
To do this they create surveys and offer an incentive so the general public will fill them in – and most of them are distributed as such [...]

Money Making Idea 2

How To Make Money On EBay

There is a lot of money to be made as a seller on eBay. Thousands and thousands of sales are made each day, resulting in a lot of income for a lot of sellers. And there is still room for you if you want to get involved – whether you want to earn [...]

Money Making Idea 3

How To Make Money Blogging

More and more people are realising that blogging is one of the best ways to start your own online business. It requires minimal start up costs, you can build an impressive and loyal readership over time and once you know how to monetize your blog it can also bring in a decent income that [...]

Money Making Idea 4

How To Make Money With Affiliate Marketing

How would you like to earn a little extra cash each month? Or even replace your income, working less to make more money… Think its a pipe dream? well, think again.
Most people know that there are millions of dollars being spent every single day purchasing products and services online. But did you know that you [...]

Money Making Idea 5

Make Money in Network Marketing or MLM

It has been said that 10% of new millionaires in the US over the past ten years have done it by building businesses through network marketing.
Even well known authors and business people such as Robert Kiyosaki (Rich Dad Poor Dad), Donald Trump (Trump University) and Tony Robbins (Robbins Institute)  have all stated that Home Based [...]

Money Making Idea 6

How To Make Money With Google Adsense

If you have a website or a blog, you should definitely sign up for Google Adsense. It’s one of the few programs you can truly ‘set and forget’ – once it’s there you don’t really need to do much else with it.
But there are ways and means to maximize your income from Google Adsense, [...]

Money Making Idea 7

Make Money Writing Articles Or Web Content

What is the one thing that everyone is looking for when they go online? You’ve got it – information. And if you can supply it in all kinds of shapes and forms then you will be paid for doing so, which could lead to a whole new career as a web writer.
Of course [...]

Money Making Idea 8

How To Make Money Selling E-Books

Make no mistake – e-books are big business online. No matter what you search for there will be someone out there selling an e-book on it.
But the best thing about them is that they provide one of the most potentially lucrative businesses you could ever hope to start online. So long as you [...]

Money Making Idea 9

How To Make Money With ClickBank

ClickBank is just about the biggest website on the internet today as far as affiliates are concerned. If you want to make money online but you don’t have a product of your own to promote, what better solution could there be than to promote someone else’s in exchange for a slice of the profits?
ClickBank [...]

Money Making Idea 10

How to Make Money Marketing CPA Offers

With the internet such a large part of our lives today, more and more individuals are looking for opportunities to make money online. While some are doing it to bring in some extra cash, others are looking for full-time careers and are being quite successful with their endeavors. Many are doing this by becoming marketers [...]

Join Oddpath and save your favorite places, share reviews and more! X