Archive: August, 2010
The bidding war over a company most of us had never heard of produced a statistic that caught my attention last week.
3Par Inc. is a Fremont, Calif., company that’s involved in the white-hot business of cloud computing. Since reaching a deal to be acquired by Dell Inc. for $18 on Aug. 15, 3Par has become the object of Hewlett-Packard Co.’s desire.
There are lots of ways to describe what an acquisition is worth. Often, it’s in terms of total dollar amount. For example, Dell’s first offer for 3Par was worth $1.13 billion.
If at first you do not buy, try to buy again.
That’s what Edward Shin, president and chief executive officer of the five-branch Royal Asian Bank, is doing.
Shin and an investor group have agreed to buy Royal Asian Bank from its parent company, the Narberth-based Royal Bancshares of Pennsylvania Inc. A statement released Thursday announcing the transaction did not contain its terms.
So the federal government will sink $129 million into an “energy innovation hub” at the Philadelphia Navy Yard?
Tell me why I feel as if I’ve walked down this road before.
It’s not because Philadelphia’s economic development change agents have tried this particular project before. It’s that big-money, big-promises programs have been unfurled here before and generally found wanting.
The downbeat feeling engendered by economic statistics lately has many of us wondering whether any businesses are growing and creating jobs.
Quite a few are, and Inc. magazine found them, releasing its 2010 Inc. 500 list of the fastest-growing privately held companies Tuesday.
The annual list is ranked by growth in revenue from 2006 through 2009. But the kind of rapid growth rates posted by these companies typically means they hire a lot of personnel, too.
A King of Prussia software company called NextDocs Corp. gets bragging rights as the Philadelphia region's fastest-growing privately held company, according to Inc. magazine. (Read the NextDocs entry here.)
The annual Inc. 500 list (along with its more populous Inc. 5000 list) was released Tuesday (read it here). Rankings are based on percentage revenue growth from 2006 through 2009. The minimum revenue for 2006 is $80,000; the minimum for 2009 is $2 million.
NextDocs grew at a 3-year growth rate of 4,342 percent. Founded in 2005, the company customizes Microsoft software for use by clients in the life-sciences industry. It had 50 employees and revenues of $6 million in 2009. (Company Web site here.)
Not too long ago, the mere whisper that an Atlantic City casino was for sale would spark bidding wars by those eager to enter the nation’s second-biggest gambling market.
But competition from the launch of slot-machine gambling in Pennsylvania ate away at what had grown into a $5.2 billion industry in 2006. The steep recession that began in December 2007 cooled Atlantic City fever further by weakening the market fundamentals and leverage assumptions made by starry-eyed investors.
Oh, there are deals being done now. But what passes for action happens inside in bankruptcy courtrooms and loan-workout departments.
Summer tends to be a slow time for business in so many ways. There’s more action at seaside than at the C-level, including changes in chief executive officers.
CEO turnover in July was at its lowest level in 16 months, according to a monthly scorecard kept by the Chicago outplacement firm Challenger, Gray & Christmas Inc.
There were just 88 CEO changes in July compared with 126 in the same month a year ago. And Challenger Gray says that in three of the last five years, CEO turnover has been lower in July than the annual average.
One way to keep up with new hires and promotions of executives at area firms is to read the “People in the News” feature in The Inquirer’s Business section on Mondays.
Still, every road that leads to Philadelphia has a lane that heads in the other direction. Some of those new hires are replacing executives who wind up finding gainful employment in places where hoagies have a different name.
Three executives from the region’s life-sciences sector recently landed at other companies with unfamiliar zip codes.