Trillium Advisory Firm Handling the Dollar’s Declining Value

Sometimes an M&A deal’s attractiveness aren’t determined by its participants, but by outside influences. That’s been the case as the plummeting value of the dollar has made acquisitions of U.S. companies more appealing to foreign buyers paying with relatively strong currencies.

Chicago, IL, November 21, 2012 --( The dollar has lost value against virtually all rivals: the euro, British pound sterling, Chinese yuan, Japanese yen and Indian rupee. Even the Canadian dollar has achieved parity with the U.S. dollar — something that hasn’t been true since 1976. But the declining dollar doesn’t necessarily mean good — or bad — news if you’re trying to sell your company. On the plus side, a cheaper dollar can translate into increased overseas business, as foreign customers take advantage of relatively lower prices for American goods. This, in turn, may result in a higher overall worth of your company. The depressed dollar also makes your company less expensive in the eyes of European and Asian business buyers and may increase the pool of potential bidders.

On the other hand, dollar depreciation may increase your expenses, especially if your company needs to buy products directly from overseas suppliers or if you rely on foreign labor. What’s more, the complexities and costs of a cross-border deal can more than offset the advantages foreign buyers enjoy from a currency imbalance.

So while the dollar’s fluctuation may be a big deal for Americans buying French wine or traveling to Japan, it remains a relatively minor factor in the larger scheme of international M&As. If a foreign buyer is considering your company, it’s likely that other reasons — strategic and cultural — are spurring their interest.

About Trillium Advisory Firm
Trillium Advisory Firm offers fair, aggressive and quality representation on our clients’ behalf. This firm pays particular attention to keeping our clients well informed to reduce their level of anxiety. This firm is service oriented with very dedicated professionals who together have over 20 years of experience in their specialties.
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Michael Wright
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