Previous Entry Share Next Entry
Chemical Mergers and Acquisitions
mcmeth58
With a handful of exceptions, the greatest fortunes created by entrepreneurs have not been made during times of prosperity. Rather they are forged during economic downturns by those who know how to exploit adversity.Washington Mutual was solidly built over a century from a single Seattle location National Building and Loan Investment Association to a major west coast banking operation with total assets of $ 307 billion, with 2,239 retail branches operating in 15 states, with 4,932 ATM's, and 43,198 employees. It was the product of dozens of mergers and acquisitions that included such venerable institutions as Home Savings of America, American Savings Bank, Great Western Bank, and Providian Financial Corporation.It was purchased in an instant at a bargain basement price of $1.9 billion by JPMorgan Chase who was wisely positioned to catch them in their fall. In an instant, JPMorgan Chase not only picked up its first significant west coast presence; it picked up massive west coast presence that would have taken years and $10's of billions to create on its own. For more about this, you may take a look at Chemical Mergers and Acquisitions. JPMorgan Chase is itself the result of a merger of Chase Manhattan Bank and JPMorgan & Co. which were each the product of long chains of mergers consisting of Chase Manhattan Bank, Chemical Bank, Manufacturers Hanover on the one side and JPMorgan & Co. and Guaranty Trust Company on the other side. The JPMorgan Chase goliath then swallowed Bank One itself the product of mergers between City National Bank & Trust Company, Farmers Savings & Trust Company, First Chicago Corp., National Bank of Detroit, and Louisiana's First Commerce Corp. With recent bargain purchases of Washington Mutual and Bear Stearns, the management of JPMorgan Chase carries on its legacy of growth by adversity now toping $2 trillion in assets.Virtually none of these mergers or acquisitions took place during good times when everyone was fat and happy. Rather they were marriages of necessity spawned by economic turmoil.So what does this mean for you? First, does this level of concentration of financial power scare you a little? It should! What special consideration do you expect from such giants? Second, which side of the current round of financial chaos are you on? The one that gets its clock cleaned or the one that captures the falling?The $800 billion stimulus package has not and will not save you. It will only concentrate more financial power in the hands of the wealthiest and biggest companies. The majority of the money is still not deployed and it will take many more months, if not years before any of it trickles down to you. In the meantime more businesses will fail into the hands of the already giant corporations, or close forever because they are too small for the big companies to want to buy. The capital you need to survive will continue to be generally unavailable to you as the freeze in the credit markets continues.Will you hang on by your finger nails or plummet into the abyss? Or, will you explore a bright light on the horizon and convert the crisis for others into an opportunity for yourself? Entrepreneurs, knowledgeable in the use financial leverage are capitalizing on the current crisis to buy up struggling companies. With their financial know-how, this is a time of great opportunity. For more detailed information, visit  Chemical Mergers and Acquisitions.

?

Log in

No account? Create an account