Merrill DataSite Releases New Comments: Cash Reserves and M&A Options

http://www.datasite.com - This article explores the current spending trends of these cash-rich corporations, the options available to them and how these businesses can use the money to invest and grow their business.

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Merrill DataSite

Cash reserves and M&A options

New York, US (PRWEB) June 14, 2013

Read the full article here: http://bit.ly/14VuMcJ

Recent reports indicate that many American companies are sitting on record amounts of cash due to high profits. What is surprising is the level of cash that these companies hold following years of economic crisis. The economic downturn, however, has not stopped many companies from earning record profits, with the S&P 500 racking up profits in 2012 that have never been seen before in history.

Companies have been utilizing this money in many different ways. Some are increasing dividends and buying back shares. This is method does little to grow the core business of the company and is considered to be lazy tactic. Another strategy employed be cash-rich companies is to poach employees from rival businesses or to use the money to invest in new equipment or in a smaller business - with the operations being absorbed into the larger corporation. This is considered a safer manageable option which would most likely to prove beneficial in the long term.

The smartest tactic a cash-rich company could adopt would be to pursue the option of spending their cash wisely by investing in their business to promote growth which has the potential to contribute to the national economy and stimulate job development. However, even though many companies can afford to, they are very wary about making poor acquisition decisions and not wanting to overpay for companies they do wish to take on.

This article explores the current spending trends of these cash-rich corporations, the options available to them and how these businesses can use the money to invest and grow their business. With cash reserves at record highs, it seems many businesses in corporate America certainly have the cash to spend – but are choosing not to.

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About Merrill DataSite

Merrill DataSite is a secure virtual data room (VDR) solution that optimizes the due diligence process by providing a highly efficient and secure method for sharing key business information between multiple parties. Merrill DataSite provides unlimited access for users worldwide, as well as real-time activity reports, site-wide search at the document level, enhanced communications through the Q&A feature and superior project management service - all of which help reduce transaction time and expense. Merrill DataSite’s multilingual support staff is available from anywhere in the world, 24/7, and can have your VDR up and running with thousands of pages loaded within 24 hours or less.

With its deep roots in transaction and compliance services, Merrill Corporation has a cultural, organization-wide discipline in the management and processing of confidential content. Merrill DataSite is the first VDR provider to understand customer and industry needs by earning an ISO/IEC 27001:2005 certificate of registration – the highest standard for information security – and is currently the world’s only VDR certified for operations in the Europe, United States and Asia.

As the leading provider of VDR solutions, Merrill DataSite has empowered more than two million unique visitors to perform electronic due diligence on thousands of transactions totaling trillions of dollars in asset value. Merrill DataSite VDR solution has become an essential tool in an efficient and legally defensible process for completing multiple types of financial transactions.

For more information, please contact Merrill DataSite: Tel: 1-866-399-3770;

Email: info(at)datasite(dot)com; Web: http://www.datasite.com

Read the full article here: http://www.datasite.com/cash-reserves-mergers-acquisitions-options107.htm

View our Knowledge Center here: http://www.datasite.com/white-papers.htm

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