Merging Opportunities
The recovering market of today can provide just as many opportunities as the booming market of the late 1990s. The trick, and challenge, is looking in the right places. To the untrained eye, the job market with large firms appears uninviting. However, with careful job research and company analysis, students may find small companies as their best option out of school. The average college graduate is facing more competition and greater odds when looking to apply for internships and entry level positions with companies like “The Big Four” (Deloitte, PwC, KPMG, EY). Therefore, the majority of students may see their best alternative in a small company. While the obvious move is to select the most reputable of the lesser known companies to work for, one should also take another point into consideration: Which company is most likely to be bought out by a bigger firm? And secondly, would that be advantageous for that company?
Mergers and acquisitions are popular in the time of economic recovery. As the United States seeks to reenergize the job market, larger companies are buying the smaller companies. The evident pros include an increase in revenue, employees, and offices. Not to mention, most acquired companies will receive better benefits, salaries, or both. Some of the more subliminal gains can be in one’s experience observing a small company grow into a large firm’s shoes.
A prime example of this scenario is the recent acquisition of the Washington, D.C. based Beer’s & Cutler by the accounting giant, Baker Tilly Virchow Krause. After Beer’s and Cutler had experienced significant growth resulting in a strong reputation in the last decade, the recession forced them to layoff close to 17% of their employees. In November of 2009, Baker Tilly was in prime position to buy out the Washington, D.C. based firm for an affordable price. Until now, Baker Tilly’s only office on the east coast was in New York. They have now added a reputable company in a primary location. The implications for significant growth for both companies now unified with one name, Baker Tilly, are not difficult to find. From The Washington Business Journal, Bryant Switzky writes, “The Beers & Cutler deal is part of a plan for an aggressive nationwide expansion. The firm aims to double its revenue to $400 million by 2012.”
In all, the message to students looking for internships or full-time positions is simple: Commit to the research. Sometimes the second tier companies have an opportunity to join the group among the first tier. The diamond may be just below the sand you stand on; but, to find it may take some digging.
Photo courtesy of Flickr.
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