Over the last decade, the internet has initiated a transfer of buying power to the consumer. Social networks have accelerated this trend by further facilitating information flow between members. Recent surges in online memberships and average time spent online per user have raised the time spent on social networking sites to nearly 10%
Companies are sold for many reasons, including retirement of the CEO, undercapitalization, risk reduction, diversification, or to open the door to new opportunities. Additionally, in the new ‘flat’ world, the barriers posed by international borders, distances and time differences have less significance than in the past, leading to a transformation of international economic equations.
Through the third quarter of 2007, US business valuations, multiples and transactions generally maintained an uptrend. Business sentiment reflected confidence based on access to easy capital and strong markets. M&A activity in the public markets and the midmarket was healthy.
Author’s Note: For a description of business adoption of social networking opportunities and risks, see my earlier paper: “Social Networks – Can Businesses Adapt?”.
This is a follow on to my earlier blog “Social Networks – How Can Businesses Adapt?” It deals with an issue close to every CEO’s heart – viz. what are the major risks my business faces in either ignoring social media and the conversations that occur there, or embracing this new medium and finding ways to leverage it?
