May 20, 2013 Category: Business & Corporate Law
Making a business plan is important for an entrepreneur, especially when he or she is in the beginning phases of a new startup company. However, business planning is also important when selling or purchasing a business which has already been operating for some time. One closely-held company, Syncreon, which is headquartered in Michigan and specializes in logistics, is now doing this type of planning as a result of intentions to sell the company for potentially $1 billion.
The company has worked for major clients such as Dell Inc. and General Motors Co. in helping to ship their goods to their customers. The owners of Syncreon are two businessmen and a financial firm known as GenNx360 Capital Partners. They are working with JP Morgan Chase & Co. as well as Morgan Stanley to locate a potential buyer for Syncreon.
According to sources involved in the private talks, private equity bidders are expected to be the most likely purchasers of the company. However, there is also interest from other logistics firms, such as Deutsche Post AG. Syncreon’s sales have recently been on the rise and were last reported at $912 million in 2011, which is a significant increase from $689 million in 2010.
The eventual purchaser of the company will need to engage in effective business planning in order to ensure the Michigan company remains profitable after the transfer of ownership. A solid business plan will also ensure that the company adheres to any rules and regulations required by law. This will help to avoid fines for non-compliance as well as decrease chances of running into problems with potential lawsuits.
Source: Bloomberg, ” Syncreon Logistics Business Said to Be for Sale for $1 Billion ,” Aaron Kirchfeld, David Welch and Joe Brennan, May 1, 2013