Welcome to the inaugural issue of BGA’s quarterly newsletter. Through this expanded electronic format, we hope to help you stay abreast of trends, issues, and best practices, which influence a stakeholder's ability to support and drive business performance. Our new format will continue to provide you with BGA’s latest thought leadership.

2005 was one of the most active M&A years in recent history. On a worldwide basis, the total value of M&A transactions exceeded 2.7 trillion, according to Thomson Financial. The US alone accounted for almost half of that volume. Judging from the recent activity, 2006 might be busier than the previous year.

For companies that sell through indirect channels, assembling a network of skilled, motivated and committed partners is tougher than ever. Likewise, distributors and other channel partners complain of a lack of flexibility, vision and innovation at the company. Josh Stailey knows the problems and offers these thoughts on how you can improve.

Newspapers, books and the Internet all contain valuable information about international business and legal dealings with China, but it can be a lengthy process to find the information you really need, especially since most of the information is based on private networks and relationships. Our President of China Operations has immediate, direct access to the highest level of government officials in China, including the Mayors of Beijing, Shanghai and Shenzhen, who are often critical to the success of companies looking to enter the China market. For the last ten years, we have sourced hundreds of millions of dollars worth of custom manufactured goods from China, and have learned valuable lessons. Take a look at our Top Ten Legal Considerations for doing business in China.

A Buy-Sell Agreement can establish the ground rules for an ownership transition which can occur for many reasons. Failure to clearly define how a buy-sell agreement is to be determined, and how often, can lead to disputes that may undo the benefit of having the agreement in place. This article explains the important role business valuations play in creating these arrangements.

A successful acquisition, one that creates value for the shareholder(s) of the acquiring company, requires a range of knowledge, resources, and expertise. We find that most businesses require help to complete a successful acquisition. Over the last 24 years, Source has provided the incremental range of knowledge, resources, and expertise required by middle market companies to complete a successful acquisition program.

This special report identifies why most businesses need acquisition help, provides a history and update of buyout finance and provides pre-acquisition ideas to businesses considering acquiring companies.