Wednesday, March 29, 2006
Headlines--- Fed Raises Fed Funds to 4 ¾% ######## surrounding the article denotes it is a “press release”
Fed Raises Fed Funds to 4 ¾%
Here is official press release ###################### The Federal Open Market Committee decided today to raise its target for the federal funds rate by 25 basis points to 4-3/4 percent. The slowing of the growth of real GDP in the fourth quarter of 2005 seems largely to have reflected temporary or special factors. Economic growth has rebounded strongly in the current quarter but appears likely to moderate to a more sustainable pace. As yet, the run-up in the prices of energy and other commodities appears to have had only a modest effect on core inflation, ongoing productivity gains have helped to hold the growth of unit labor costs in check, and inflation expectations remain contained. Still, possible increases in resource utilization, in combination with the elevated prices of energy and other commodities, have the potential to add to inflation pressures. The Committee judges that some further policy firming may be needed to keep the risks to the attainment of both sustainable economic growth and price stability roughly in balance. In any event, the Committee will respond to changes in economic prospects as needed to foster these objectives. Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Susan S. Bies; Jack Guynn; Donald L. Kohn; Randall S. Kroszner; Jeffrey M. Lacker; Mark W. Olson; Sandra Pianalto; Kevin M. Warsh; and Janet L. Yellen. In a related action, the Board of Governors approved a 25-basis-point increase in the discount rate to 5-3/4 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Dallas, and San Francisco. (For further details, please see “News Briefs”) ### Press Release ########################### Archives---March 29, 2001--Code of Ethics "Body Count" It appears that the Leasing News concept of counting how many members were expelled from an association as the "rating" of the associations standards or ethics is incorrect. It is not a "body count," as was the practice in Viet Nam, but a "dispute resolution" The actual procedure starts out with a "committee" and may not go before the full board. Here is a first of a series of report. We are pleased to have Joe Bonnano, CLP, who we consider the premiere leasing attorney, legal counsel for the National Association of Equipment Leasing Brokers, write about this exclusively for Leasing News: “A few weeks ago in your newsletter, you had raised the issue of how many members had each leasing association expelled from its membership. I respectfully believe that the question is misplaced. I believe that the proper question to determine the effectiveness of an ethics program is along the lines of how many disputes between members of your association has your association provided assistance to resolve and of any unresolved disputes, how many members has the association had to expel? Let me explain what this rather long question is getting at. “The NAELB has in place an ethics procedure that was carefully designed by Barry Marks and myself, of course with the approval of the entire NAELB Board and ultimately adopted by the NAELB membership. The procedure is as follows. First, a written Complaint is filed with my office. The Complaint is forwarded by me to the party that is accused of unethical behavior and there is a 10-day period to respond to my office in writing. The submission of supporting documentation is encouraged. “From there, I look at the position of both parties and try to work with both parties to amicably resolve the issues. In the event that the issues cannot be resolved, then the second phase of the procedure is used. My office then takes all correspondence that I have received in the matters, deletes all references to all names of any individual or entity and forwards that "blind" correspondence to our ethics committee, that consists of two brokers and two funders. Each of those committee members then responds to me with their opinion on the issues. This is a built in safety gap that allows opinions from those that are actually engaged in brokering and funding on a daily basis. “When those opinions are obtained, I then go back to the parties and indicate on a "blind" basis what the opinion of the committee was. That is, the identity of the committee is only known to me. This feature preserves the integrity of any business relationships that may exists between parties involved in the dispute and their reputation with those individuals on the ethics committee. After those opinions are reviewed and discussed, there is yet another opportunity to resolve the dispute. At that point, if the dispute cannot be resolved then the parties have the option to take the matter to the full NAELB Board of Directors. When the matter goes to the full board, the names of the parties are revealed to the Board members only. At that point, the Board has wide discretion to take any action that it deems appropriate, including expulsion. “So as you can see, to the NAELB the expulsion of members is not a goal, the goal is to assist members in dispute resolution. Expulsion of members is only a last resort, and results in only the extreme cases of either flagrant unethical conduct or a failure to respond and acknowledge the ethics procedure. In the past year, we have unfortunately had to expel two members. Through my office, I must have assisted in the resolution of anywhere from 10-20 disputes, both formally and informally. So from our perspective, the ethics program clearly sets forth a code of ethics to abide by and the NAELB attempts to resolve ethical disputes between its members. In the event the dispute cannot be resolved, then expulsion is clearly the action of last resort. “It is my experience that this program works and is a great benefit to our members. It is available to all members, including funding sources, of the NAELB. It is a benefit to all of our members. “Thanks again Kit and looking forward to seeing you in New Orleans.”
Joe Bonanno, CLP, NAELB Legal Counsel law@jgbesq.com -------------------------------------------------------------- Classified Ads--- Sales Manager
Livermore Valley (Around Poppy Ridge Golf Course) California * Here is a larger view you may open: http://www.leasingnews.org/items/LN_Classified/Livermore.jpg Atlanta, GA Chicago, IL Chicago, IL Dallas/Fort Worth, TX Geneva, IL Marlton, NJ New York, NY Pennsauken, NJ Portland, OR For a full listing of all “job wanted” ads, please go to: http://64.125.68.91/AL/LeasingNews/JobPostings.htm To place a free “job wanted” ad, please go to: http://64.125.68.91/AL/LeasingNews/PostingForm.asp * Livermore Valley (Around Poppy Ridge Golf Course) California sunil6865-pbase@yahoo.com Sunil Veluvali, pbase gallery ---------------------------------------------------------------- Your Friendly Federal Trade Commission by Christopher Menkin
"The Commission is headed by five Commissioners, nominated by the President and confirmed by the Senate, each serving a seven-year term (on a staggered basis so they do not all expire at the same time.) The President chooses one Commissioner to act as Chairman. No more than three Commissioners can be of the same political party. The current Chairman and Commissioners are: Deborah Platt Majoras, Pamela Jones Harbour, Jon Leibowitz, William E. Kovacic, and J. Thomas Rosch. http://www.ftc.gov/bios/commissioners.htm "The FTC may begin an investigation in different ways. Letters from consumers or businesses, Congressional inquiries, or articles on consumer or economic subjects may trigger FTC action." http://www.ftc.gov/ftc/action.htm Perhaps best known to the equipment leasing industry is FTC Senior Attorney Randy Brook out of the Northwest Regional Office, Seattle, Washington. He has over thirty-three years with the commission, winning many restitutions, the most recent was from Leasecomm, where stop collection efforts on all outstanding judgments, totaling $24 million, involving the financing of the software and equipment for processing credit-card transactions. Leasecomm also paid a $1 million fine to be split by the states of Massachusetts, Florida, Illinois, Kansas, North Carolina, North Dakota and Texas. The district attorney for Ventura County, California also received a portion of that fine.
Leasing News readers perhaps know this man most from our stories on the NorVergence scandal, where he acknowledges communicating with private attorneys, the attorneys generals and their staff, plus 'FTC headquarters staff in Washington, DC. He states the FTC has always welcomed information from both state government and the private sector, striving to work for the good of all consumers, including those in business. In writing the story about how many were offered and took settlements from the attorneys generals office in NorVergence lease settlements, Brook said he could make no official comment, but personally believes they were reasonable offers. The FTC is not involved in criminal prosecutions but primarily in protecting consumers and obtaining restitution, he pointed out. As an information gathering process across the 50 states, what the FTC staff uncovers can be used in deciding whether to bring cases with nationwide effect. That information may also be used by various law enforcement agencies of both the federal and state governments. In the NorVergence telephone scandal, the FTC received a $181,721,914 judgment in the Federal District Court case against NorVergence . While it is most likely there will be more liabilities than assets, the judgment was of assistance to those who had signed leases where the equipment and service did not begin or any collateral nature from those who had direct leases with NorVergence. At the present time, Brook and his staff are looking into several leasing companies in the manner in which their financial records book the "Equipment Rental Agreements." In one instance, a Civil Investigative Demand (CID) was issued to IFC Credit Corporation, Morton Grove, Illinois, for such information. On the Lease Team web site where their clients are listed, one of them is IFC Credit. Brook claims to be comfortable in reading “Lease Plus,” the software which records the leases for accounting purposes and is utilized by IFC Credit Corporation. In the Leasing News story about the numbers who accepted settlements from New York Attorney General Elliott Spitzer and his staff, Leasing News noted it had questions (http://www.leasingnews.org/archives/March%202006/03-24-06.htm#norv). In an exclusive interview, FTC Senior Attorney Randy Brook had answers : "As you know there are many ways to define "leases .” These may vary leg ally, accounting wise, by the consumer, by the leasing trade itself... T hese NorVergence contracts principally financed services, which doesn't sound like a lease in any legal sense. Even the forms themselves are titled "Equipment Rental Agreements , " not leases . From an accounting standpoint, they might be treated as leases, but that treatment would have to comply with FASB 13. With NorVergence as the "rentor," and with a rental price tens or hundreds of times the Matrix cost, they would presumably start out as a sales-type lease under FASB 13 . The rental agreement might be treated after assignment to a finance company as a direct financing lease, but I can't see how it could ever be an "operating lease .” “Xerox Corp. got into trouble with the Securities and Exchange Commission when it mixed services in with its copier leases and treated the whole package as an operating lease. Note that I don't have any reason to think the finance companies here are treating the NorVergence rental contracts as operating leases, but I expect we will find exactly what they are doing during our investigations. "In investigating finance company practices, the FTC is examining how the accounting was recorded of the "Equipment Rental Agreement." Under FASB 13, one of the requirements is to determine the "Fair Market Value" of the equipment. FASB 13 lease classification also requires consideration of residual value at the end of the lease. What numbers were utilized? The actual cost of the Matrix Box or the rental price? The FTC charged that the rental contract prices had nothing to do with the cost of the Matrix box. It also charged that finance companies doing business with NorVergence knew or should have known that the Matrix was only an incidental part of the services promised by NorVergence and that, based on the wide variance in rental agreement amounts, that the contracts might have been part of a scheme to defraud consumers. Thus, the manner in which the rental agreements were on the actual books is something the FTC is examining closely. ”Kit , you've asked me about UCC Article 2A. First, I should say that the UCC is a state law issue, and the FTC doesn't enforce state law. However, if a company misrepresents that consumers have to pay no matter what happens, and misleadingly base that claim on a state law that might not apply at all, that misrepresentation could be an FTC issue. This happened in the Leasecomm case. “In Leasecomm, the FTC contended that the leases were for intangibles like websites that could not be subject to 2A leases. Here, with the rental agreements principally covering future services, the same argument might apply. However, there's another reason why it might be misleading to say that 2A applied to NorVergence rental agreements. Article 2A presumes that the lessor is not the manufacturer or supplier and has not selected the product leased. NorVergence claimed to be the manufacturer, or at least was the supplier of Matrix boxes manufactured by Adtran. It was also the original "rentor" and selected the equipment out of its inventory. I don't see how 2A could apply to this situation. This could impact whether any "hell or high water" clause would be enforceable, although as I said, this is a matter of state law, not FTC law. However, as the FTC charged in the NorVergence case, various clauses in the NorVergence Rental Agreement might have allowed the finance companies to misrepresent that consumers owed money regardless of whether NorVergence provided the promised services. " Another thing the FTC is looking at, as you can see in the investigational documents made public in a recent court filing, is "force placed" insurance on the Matrix boxes. A rental contract provision allows the rentor to obtain loss or damage insurance on the Matrix and bill the customer for it, similar to what is done for vehicles purchased on credit or home mortgages . Here we have to ask how the amount of insurance coverage was arrived at . "The same question comes up regarding personal property tax. Was it on the fair market value of the equipment only, as is the requirements in most counties through the United States that collect this tax, or did it include the soft costs, such as service, installation, and labor that were part of the total rental price ?" Now it is time for the leasing companies to answer questions from the friendly Federal Trade Commission. ---------------------------------------------------------------- Two Meeting Tomorrow Open to Non-Members UAEL Leasing Association Meetings Open Non-Members
Roundtable Event Roundtable Discussions: Ken Goodman, Goodman & Associates Bob Robichaud, PFF Bank & Trust Paul Foster, Allegiant Partners Experian Chris Pisacane, PFF Bank & Trust No cost to UAEL Members, $10 for Non-Members ----------------------------------------------------------------------------
March 30, 2006 at 6:00 PM Fox & Hounds Pub No Cost Appetizers, No host bar Guest Speaker to be announced 50-50 Raffle Register online at www.uael.org or contact Bill Grohe at Phone: 415-681-2234 or email at bill@uael.org
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TEAM Equipment Leasing added to “Story Credit” List
Story Credit Lessors These companies specialize in "C" and "D" credits, often news businesses, or businesses where the principal(s) have Beacon score around 600 or previous difficulties; meaning to become comfortable with the credit and financial situation you need to learn the "story" to make a positive decision, often requiring further security, shorter term, or additional guarantors. Many of these companies may also be a "B," but appear otherwise without the "story" to understand the full financial picture. (To qualify for this list, the company must be a funder and not a "Broker/Lessor" or "Super Broker/Lessor", along with an acceptable Better Business Bureau Rating and no history of complaints at Leasing News. We reserve the right to not list a company who does not meet these qualifications.) We encourage companies who are listed to contact us for any change or addition they would like to make. Adding further information as an "attachment" or clarification of what they have to offer would be helpful to readers is very much encouraged. ( To apply to be listed, please fill in this form and fax to 408.374.3843 or you
(A) Pawnee Leasing Corporation; Some times we go higher than $30,000, but our marketplace is from $1,000 to $30,000. (B) Allegiant.pdf (C) Mesa Leasing, Inc., Industries served: Titled vehicles (Trucks, trailers, OTR, etc.), Construction, Restaurants, and all the other "hard to get approved" industries. (D) ABCO Leasing, Inc. in Seattle area has been operating since 1974 serving the broker community. We required full financial disclosure on every transaction. We do story transaction, but do not like to refer to them as "C" of "D" credits. We think of therm as "A" type credits that have not been discovered yet. In actuallity, we do not really like to look at what most describes as "D" credits. (E) Black Rock Capital comment: We book anywhere between $15 to 20 million per year. We do no "app only" business and require a full financial package for each transaction. Our average size transaction is approximately $250k and, although, we concentrate in printing, packaging (steel rule die industry) and road construction equipment we do not rule out anything that makes sense. More information can be found at www.blackrockcapital.com. (F) Black Rock Capital (Ireland) Limited and Black Rock Capital (UK) Limited provide the same services for small to middle market corporations in the European Economic Community and the United Kingdom. (G) Cobra Capital, LLC. Comments: Our registered trademark "Making impossible possible" is our central marketing tagline for both strong and weak credits. I have developed a 10 year history, (from Cobra and my prior company GALCO), with specialty, non-conforming transactions (story credits) and have a solid reputation for candidly responding to our originators and lessees and working diligently to mitigate deal risk rather than making excuses to turn deals down. Our originators prefer our underwriting approach to non-conforming transactions since unlike most non-conforming funders, we prefer to mitigate risk versus jacking our return. Both Originators and Lessee's prefer our candid approach as we are also frequently asked to advise lessee's and lessors on the best way to structure their bank loans and raise capital due to our 25+ year banking and accounting backgrounds as my partner and I are both former bankers and CPA's. (H) Pentech is the lessor partner with Manifest Funding Services for their Navigator, Navigator Plus & Navigator Direct. This is through our sister company Pentech Funding Services, located in San Diego and headed up by Ron Wagner. (I) Sunrise International Leasing Corporation Comment: The broker program is "...an informal program as our primary business is still vendor leasing." (J) Boston Financial & Equity Corporation, most of our leases are venture capital backed startups and turnarounds. We require full financial disclosures, CPA and internal statements, no tax returns. We do not required additional collateral, no PG's or RE needed. Do not send deals with large tax liens, especially if they are payroll taxes. (K) Dakota Financial is a collateral-based direct funding source that specializes in C & D level transaction for customers who are unable to receive funding from traditional sources. Our nationwide program provides funding for start-ups as well as credit profiles that have prior bankruptcies, judgements, tax liens, repossessions or slow pays. I would say that the average credit score of our transactions is in the mid 500s. We have done many deals in the sub 500 range. Although we do all kinds of equipment, we specialize in trucks (including over the road owner operators), trailers, yellow iron and logging equipment. I encourage you to go to our website, www.dakotafinancial.com to find out more information including examples of recent funded transactions. (L) IFC Credit Corporation also services on a regular basis "A" and "B" credits, but it also considers "story credits." "As you say, we need to become comfortable with the credit and financial situation and learn the "story" to make a positive decision, often requiring further security, shorter term, or additional guarantors. I would describe the B and C type credits we fund as companies having 'checkered earnings'." (M) Creative Capital Leasing Group: "We are able to fund tough deals, bad credits, BK's, past tax liens, start ups, used equipment, etc., because we look outside the transaction for real estate, and marketable securities to take as additional collateral." (N) Blackstone Capital Partners, L.P. lends up to 50% of verified auction value for working capital and/or equipment financing requests (we of course include equipment to be acquired in our valuation). Using this formula, allows Blackstone to approve deals on the assets rather than the credit or cash flow that other lenders desire. Also being an asset lender, we are looking for hard assets i.e. yellow iron, machine tool, manufacturing lines, textile etc... We do not care for soft assets such as computers, furniture, restaurant, or "white elephants" (equipment that is too specific to the clients needs and was specially built for them - there would be no resell available and our liquidity if repossessed would be in jeopardy). If you have any questions, please feel free to call, we will do our best to help or seek the answer for you. (O) Bankers Capital " We will do ANY Type of Equipment, in ANY industry, in ANY state. We especially like 6-figure transactions with full financial packages no matter how good or bad they look. We look to structure the story C&D credits with any kind of additional collateral that makes sense. It could be with 2nd or 3rd mortgages on residential or commercial Real Estate, additional equipment, cash value life insurance, security deposits, vendor agreements. We look for any way to make the deal work instead of looking for any way to decline the deal." (P) Financial Pacific Leasing supports a nationwide network of Brokers and Lessors. We specialize in "B" and "C" credits for established companies as well as companies under two years in business. (Q) American Leasefund, Inc. funds small hard to do transactions under $50,000.00. Most of the transactions are "app only". We look for additional collateral or larger first payments to help the weaker credits. We maintain and service our own portfolio. All of our lessee billings are done via ACH. (R) Dolsen Leasing has served the 11 Western States since 1958 and specializes in B & C Credits for established and new companies. We require a full financial package and offer both leases and financing for new and used equipment in the range of $10,000.00 to $250,000.00. Specialties include titled vehicles for both existing and new owner operators. Story credits are considered as long as credit has been reestablished and trends are positive. Credit decisions are based on old fashioned common sense, not credit scores, allowing us a very quick turnaround-often the same day. We accept broker business and also have in house salesmen. (S) We at Summit Leasing consider ourselves to be primarily "B" credit lenders, working almost exclusively through brokers. (T) TechLease - due to previous experiences, TechLease is vertically focused on three primary sectors: Semiconductor, Media and Aerospace. We fund all deals and hold paper an all equipment under $250,000. Deals over $150,000 we typically want to meet the Lessee face-to-face. We prefer business in California, however we will fund nationwide. (U) Radiance Capital, LLC specializes in start-up business. These are the northern states we do business in AK, AZ, CA, CO, ID, OR, WA. Click here to read our Product overview and Press Realease. (V) Agility Solutions; we fund all equipment used by Wireless Internet Service Providers. (W) Forum Financial Services, Inc., prefer venture capital backed start-ups and middle market to large corporate turnaround companies including companies in bankruptcy and post bankruptcy. Our absolute minimum sales for an established business with financial problems are $10.0 million. (this does not include venture capital backed start-ups). (X) Advantage Funding - While we also consider quality equipment leasing as a funder, in the title vehicle leasing business, we consider all types of situations and credits and speciality vehicles for commercial use. We have a history of understanding all types of title vehicle leasing. (Y) Gonor Funding specializes in hard to fund leases with D credit. Collateral based with good rates and commission program. (Z) "TEAM Equipment Leasing is a structured lender for brand new businesses or for older companies with previous credit problems. We do not credit score. The secret to producing an approval for C-Credits starts with interviewing your customer." http://www.leasingnews.org/Story_Credit/Story_Credit.htm --------------------------------------------------------------
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Business Development Officer
Chief Credit Officer
Lease Coordinator
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New Study Debuts: Leasing Decisions of Small Firms Improving cash flow continues to be the main reason small firms choose to lease equipment, according to a new Equipment Leasing and Finance Foundation study on the leasing decisions of small companies. This study, called Leasing Decisions of Small Firms, identifies the reasons firms choose to lease and the reasons they choose to purchase. Also, it describes who, in the small business community, chooses to lease and who chooses not to. Using survey data collected by the Gallup Organization on behalf of the National Federation of Independent Business, the study offers a profile of small firms most likely to lease equipment and also identifies challenges facing the leasing industry in the small business sector. “There is a huge opportunity for lessors in the small business area,” says Morris G. Danielson, Ph.D., St. Joseph's University, a researcher on the study. “Only 14 percent of the firms in our research lease in any meaningful way. That means 86 percent are potential customers.” One of the most striking outcomes of the study was that the more educated a business owner, the more likely they chose to lease. But, Danielson says, “The highly educated owners also don't lease 100% of the time. The ones that do not lease as much don't because they perceive it costs more. They don't buy into sales efforts that don't hold up to cost tests. But, educated owners will seek to understand the cash flow and tax benefits.” The study found that the small firms most likely to lease are the very smallest companies with one to three employees. Also, the firms that are the youngest (in business less than 5 years) are good leasing candidates. “They are growing and do not have as much capital built up,” says Morrison. “But, these firms pose both an opportunity and a challenge. Some of these smaller firms may be less likely to meet standard credit terms.” Educating potential lessees on the benefits of leasing was offered as a main strategy for lessors seeking to increase their share of this market, especially pointing out tax benefits and risk transference benefits. Morrison says, “a main reason the respondents reported they purchase is that it costs less. So, there really is a perception that leasing is more expensive. The industry hasn't convinced small businesses the benefits outweigh the costs.” He adds that specifically where lessors should educate this market is on tax benefits. “The study asked if they calculated tax consequences and asked about their use of cash flow projections in investments. What we found are the firms that calculate the tax implications of investments are more likely to lease equipment,” he points out. The study also found that firms have a preference for leasing or purchasing depending on the kind of investment they were making. “Firms that are investing in new lines and making riskier investments are the firms that would be most likely to lease,” Morrison says, adding that the firms choose leasing for risk transference reasons. “We found that the small firms are buying into the risk transfer benefit,” he says, citing the very smallest firm, the youngest companies and those organizations investing in new business ventures as the prime candidates for this benefit. So lessors seeking an untapped market should consider the small business community. Just make sure you educate them well, advises Morrison. In other words, help them do the math. The Leasing Decisions of Small Firms study was conducted by Danielson and Jonathan A. Scott, Ph.D., Temple University and is available through the Equipment Leasing & Finance Foundation at www.LeaseFoundation.org. The cost to non-donors is $75.00 for the study; donors receive a copy at no cost. Sites of Reference: http://www.leasefoundation.org/store/ CONTACT: Lisa A. Levine, CAE Equipment Leasing & Finance Foundation
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--------------------------------------------------------------- Islamic financial companies made great strides in last 30 years Kuwait News Agency (KUNA) KUWAIT, (KUNA) -- Islamic financial institutions have made great strides in the past 30 years taking over about 30 to 35 percent of the current market, a share that is expected to increase to 50 percent in the next five years, chairman of Rasameel Structured Finance Company Mansour Al-Mubarak said Tuesday. Al-Mubarak, whose company is co-sponsoring the 3rd Islamic Banking Conference to be held next Tuesday, said in a press release issued today that Islamic financial institutions have made these strides by focusing on human development and by improving their financial products. He urged lawmakers and the Central Bank of Kuwait to expedite the issuance of the Islamic Sukouk (timeshare lease bond) law to increase investment tools in the Islamic financial market. He said the Ministry of Commerce and Industry must strengthen its role in raising the quality and performance of the market by speeding up the establishment of an independent stock market authority assigned to regulate the exchange and to ensure transparency and justice and promote trust among traders. On the Islamic Banking conference to be held next week, he said it is an opportunity for experts to exchange views and experiences on the development of this sector and its future prospects. The conference is organized by Al-Fajr Consultancy Company in cooperation with the Kuwaiti Economic Society. ### Press Release ########################### World Deal Market is Booming, says New Report
The global corporate finance market is performing powerfully, with the number of deals completed by IMAP (International Network of M&A Partners) in 2005 reaching a seven-year high. IMAP is one of the world's leading international M&A networks, comprising independent M&A advisory firms from across the globe. Fresh research from IMAP shows there were 220 transactions completed by its members in 2005 – more than any year since 1998, and a 16 per cent increase on 2004. Furthermore, the total value of deals, at $4.1 billion, has doubled over the last 4 years. The survey also predicts a robust 2006. The number of cross border transactions represented 25 per cent of the total number of completed deals. Most notable cross border transactions for IMAP members included Anritsu of Japan acquiring NetTest of Denmark, Amtek Group of India acquiring Zelter GmbH in Germany, and the merger of Pierrel (Italy) and Pharmapart (Switzerland). Anritsu is Japan's largest test and measurement equipment maker with turnover of circa US$790m, Amtek is a leading US$700m turnover automotive components group, and Pierrel and Pharmapart are leading pharmaceutical contract manufacturing and research service providers. The IMAP research shows that in Europe there were 120 cross border deals, worth $2.23 billion, while North America recorded 94 deals, valued at $1.7 billion, and South America & Asia saw six transactions worth $133 million. Meanwhile the survey suggests the high level of demand for European acquisitions is set to continue, with 60 per cent of respondents predicting more buyers in 2006. In North America, the survey emphasizes an upsurge in the number of businesses coming onto the cross border market, with 70 per cent of members foreseeing a greater number of sellers in 2006, whilst 95 per cent of members are predicting the same number of buyers as last year.
Bruce Kropschot Bruce Kropschot, president of Kropschot Financial Services which has been an IMAP member for nearly 20 years, stated “Strategic buyers are back in the European market and private equity remains strong, especially since finance is readily available and relatively cheap. Europe will be an interesting area in 2006, with many interesting cross-border opportunities.” Not surprisingly, many IMAP members are expecting to see a continuing increase in the number of buyers from Russia, India and China making acquisitions in Europe and North America. Mr. Kropschot says “2006 is going to be a good year to be in the deal business in North America”. “The continuing availability of cash to finance deals, fuelled by low interest rates and promising economic prospects all bode well. There will be greater cross border activity” he adds. Kropschot Financial Services is the leading provider of M&A advisory services for equipment leasing companies, and Mr. Kropschot indicated that the firm expects to close a large cross border equipment leasing company sale in April. IMAP (International Network of M&A Partners) is an exclusive global network of M&A advisory firms. IMAP has unmatched global reach, with over 400 dealmakers spread across 31 countries, covering North and South America, Europe and Asia. Globally, IMAP advised on 220 completed transactions in 2005. ### Press Release ########################### SG Equipment Finance opens a subsidiary in Ukraine SG Equipment Finance, the leading European specialist for Equipment and Vendor Finance, establishes a subsidiary in Ukraine to extend the scope of its international network. SG Equipment Finance aims to develop its existing multi-country relationships and vendor programmes in Ukraine, and spread its expertise into this new territory. This development confirms SG Equipment Finance's strategy of supporting leading international equipment manufacturers, and providing them with flexible and innovative financing solutions whatever the market and the needs. The new subsidiary reinforces the leading position of SG Equipment Finance across Europe and is a step further in its developing coverage in Central and Eastern Europe. SG Equipment Finance will be able to reinforce its commitments with key customers of Société Générale group. Moreover, the creation of this new subsidiary reflects the willingness of Société Générale to develop further synergies between its business lines. About Société Générale Société Générale is one of the largest financial services groups in the euro-zone. The Group employs more than 103,000 people worldwide in three key businesses: *Retail Banking & Financial Services: Société Générale serves more than 19 million individual customers worldwide. |
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