Throughout the past several decades, the commercial activities known today as M&A – mergers and acquisitions – have become prolifically popular. Though there currently aren’t as many mergers nor acquisitions as there have been over the past two to three decades, the mergers and acquisitions occurrence count just in the United States of America has consistently featured more than there were, say, 50 years ago.
In mergers, two or more businesses combine assets and likenesses with one another to form a larger company. JP Morgan Chase was formed some years ago through a deal between JP Morgan and Chase, both of which were separate financial institutions, in which each company combined their collective pools of assets with one another to form a completely new entity.
Acquisitions, on the other hand, feature one large company purchasing the ownership interest of another company. In almost all cases, the size of the company being acquired is significantly smaller than that of the parent company, or the one purchasing the smaller company, because purchasing an entire company costs quite a bit more than the value of assets owned by the side getting bought.
Major financial institutions like Madison Street Capital make their living off of mergers and acquisitions, though Madison Street Capital does have several other tricks up its proverbial magician’s sleeve to generate income.
One of these many “tricks” is consulting. While Madison Street Capital engages in so many activities to generate income that its 100-plus employees have a collective body of expertise spanning literally everything in financial services, consulting is a substantial source of income because of businesses like Professional Pipe that want to make sure the transactions they are involved in are fair and in their best interest.
Madison Street Capital was the one and only advisor and counsel for its client’s, Professional Pipe, Inc., recent forking over of the entirety of its ownership interests for a hefty sum of money provided by the many investors at KJM Capital.
Short of one month ago, the then-most recent customer of Madison Street Capital was Professional Pipe, Inc., a regional company based in North Carolina that is known for designing the layout of and installing plumbing and pipes for processed goods to flow through at businesses around the United States, which needed help in determining if the offer provided by KJM Capital was worth its weight in salt or not.
KJM Capital’s founder and lead executive Kenneth J. Meister shared following the completion of the deal that “we are pleased to partner with the entire PPI team to continue its success” in its line of business, something that few other competitors are found in. This made the purchase of Professional Pipe so tempting.
To learn more, visit http://madisonstreetcapital.org/.