“Mergers and acquisitions generally succeed in generating cost efficiency through the implementation of economies of scale. An increase in cost efficiency is effected through the procedure of mergers and acquisitions. This is because mergers and acquisitions lead to economies of scale. This in turn promotes cost efficiency.”
Here we take a look at a few recent ones that were undertaken in New York.
Holtec International is acquiring the Indian Point Energy Center
from Entergy Corp. Through this the firm
will decommission three of the plant’s nuclear reactors. This will result in a doubling of its existing
reactors portfolio that is set to be diminished entirely. The transaction will
be complete in 2021.
Last week, Sequential Brands Group, Inc. is selling rights to the
Emeril Lagasse and Martha Stewart brands. The new owner will be Marquee Brands LLC.
The price for the sale (including accessories) is estimated at $175
million plus an additional $40 million in earnout opportunity. According
to Sequential Brands Group CEO, Karen Murray:
“This transaction allows Sequential to make meaningful progress in de-levering our balance sheet, which is a top priority. This process was conducted after careful consideration by our Board of Directors and advisors. While we have made significant progress with the Martha Stewart and Emeril Lagasse brands, we determined the best direction for the Company going forward is to focus on our core active and fashion brands and drive even more profitable growth across our business. I have confidence that the Martha Stewart and Emeril Lagasse brands will continue to flourish under new ownership as they build on what we have accomplished to date. We thank Martha for her support of Sequential and this transaction.”
Industries ebb and flow with how they generate income. The two sectors we will focus on here are:
beer and fitness. They are currently
providing New Yorkers with jobs and the economy with wealth.
It seems that beer is good business. At least in New York. The industry’s growth has been so impressive that last
year a staggering $3.5 billion was generated in “direct economic impact,
through beer production, sales and the operation of brewery tasting rooms”
according to a report undertaken by John Dunham and Associates (JDA).
More than the revenue is the job market. The industry in New York alone is giving
11,000 people jobs, equaling $722 million in salaries. In fact, it’s estimated that without a trace
of the beer industry, 20,000 jobs wouldn’t exist. Add this to the mix and the value generated by the beer industry
was $5.4 billion for 2018. And that doesn’t even include the $1.1 billion that
comes from the purchase of supplies, marketing, sales, etc. It’s a big
Fitness has long been a growing industry. New Yorkers are not alone in their love of
the fitness industry. In fact sometimes
it seems that every other week there is a new class or fitness factory. Throughout America, according to the
International Health, Racquet & Sportsclub Association (IHRSA), there is at
least a 3 to 4 percent annual increase within the industry and around 20% of US
adults have a fitness club membership. According to Statista, US consumers are
spending $30 billion per year on gym memberships.
Looking into New York’s East Village we find the growth of Crunch
Fitness. The firm opened its doors over
three decades ago and since then has expanded significantly. With an app that syncs with the Apple Watch,
over 100 online workouts for those who want to stay home and 25,000 square feet
for those who want to actually go to the gym, this seems to be an example of
how seriously New Yorkers take their workouts.
The 19thThurgood Marshall College Fund’s Annual New Jersey Award of Excellence ceremony was held at the end of March in Belleville, NJ. Winning an award is good for any business for many reasons: it recognizes excellent work; elevates a company’s reputation; bolsters morale at a firm and sparks supplementary customer interest. But with this particular award, winners such as RWJBarnabas Health’s Michellene Davis can also take pride in the parallel being made with the award’s founder. As Davis said:
“This award means so much to me, because Justice Marshall embodied that which the premise of my life’s work is premised upon, such as advocacy, education, justice and civil rights. I am honored that my very small contributions were deemed worthy of this amazing award.”
Michellene Davis is a woman of many firsts. She was Barnabas Health’s first female (and black) individual to become Executive Vice President of Corporate Affairs. In addition, she was the first ever African American to hold the position of Chief Policy Counsel to New Jersey Governor, Jon Corzine.
With April 1st marking the beginning of a new fiscal
year, New York – along with other states – had to have handed their budgets
in. One aspect of this is the permanence
of the yearly 2 percent property tax cap will become permanent and $1billion
will be added to the education budget.
Another is the creation of the public campaign finance system which is
valued at $100 million .
Regarding transportation and infrastructure issues, Manhattan is
about to be subject to a congestion-pricing system. In addition, taxes on NYC real estate
transactions will see an increase. And
“mansion houses” (those that sell for more than $25 million) will be subject to
According to chairman of the Regional Plan
Association, Scott Rechler:
“If our transit system is the beating heart of our city, then our arteries are severely clogged, Congestion pricing is the right solution at the right time, and it is only fitting that New York City be the first city in the U.S. to incorporate it.”
of the budget was focused on earmarking funds for the MTA for New York’s
transit system and commuter railroads.
It seems Mayor de Blasio wants to
fight for more rights for New York City workers, in particular, for paid
vacation. He is attempting to make New
York the first US state to
“require private businesses to provide time off with pay.”
Some small business owners in the region are not
in favor of this, especially given the additional strain the increased minimum
wage has put on them. If the proposal
becomes law, business owners would be forced to give their full time employees
a minimum of 10 paid vacation days a year; a number that would be pro-rated for
part-time employees. This would be in
addition to paid sick leave.
While some business owners would like to do this, they
claim it is just not realistic and that the Mayor is not looking out for SME
owners to help them “make ends meet.”
Meanwhile around 150 people are set to lose their jobs altogether
as AT&T closes its Syracuse call center.
The center is moving to Orange Park, Florida where lower wages will be
paid. According to the Communications
Workers of America Union, approximately 50 people have accepted the transfers,
leaving 100 without work. So now union
workers are calling upon the Save NY Call Center Jobs Coalition to pass a bill
to require NY call center operators to inform the Department of Labor should
they move 30 percent or more of their workers out of the state. Should they still go ahead, they would not be
privy to any state benefits for five years.
Just in time for International Women’s Day, three out of the ten people named to the ROI Power List Influencers of 2019 are women! Michellene Davis, Christine Stearns and Trish Zita were recognized for their unique and valuable contributions to the government.
Of these women, Michellene Davis is the only minority woman who was recognized as an Influencer. Michellene Davis is a trailblazer with an impressive list of accomplishments: a noted trial attorney, she created the New Jersey’s Department of the Treasury’s Office of Supplier Diversity and Division of Minority and Women-owned Businesses and was the youngest lottery CEO for the state of New Jersey. Michellene Davis is a public advocate and lobbyist who is also an inspirational speaker.
Christine Stearns is an attorney and healthcare lobbyist who
specializes in the healthcare industry. She is an attorney who serves on the
board of the New Jersey Health Care Quality Institute and the Samaritan
Healthcare & Hospice. In 2005, she co-chaired the Governor of New Jersey’s Health
Care and Senior Service Policy Group.
Trish Zita is the co-founder of the Kaufman Zita Group and the firm’s managing business partner. A powerful and effective lobbyist, she also represents companies as well as non-profit organizations. She was selected by Governor Phil Murphy to serve on the Environment and Energy Transition Committee and has received several awards for her work.
These three women set an inspiring example of leadership.
This month and next month there are a
variety of conferences and meet-ups in New York. Here we take a look at three of them:
On March 11th, starting at
8am and continuing until March 12th at 4.30pm, New York’s Grand
Hyatt will be home to the Local Online Advertising
Conference. Hosted by Borrell
Associates, a whole slew of industry leaders will come together at the largest gathering of local
digital media executives. Now in its 10th year, attendees will be
privy to top speakers tackle paramount trends within the industry. Note: the conference is all about local, digital,
and advertising. Between 300 and 500 executives attend each year.
A week later
the Marriott, Brooklyn Bridge will open its doors to the Responsible
Business Summit. With approximately 500 attendees, the two-day event from 18th-19th
March is now in its 7th year.
Speakers include: Assistant Secretary General UN Environment, Satya
Tripathi, Mayor of Philadelphia James F. Kennedy, CEO of LanzaTech Jennifer Holmgren,
President of the SASB Foundation Matthew Welch and more. Supplemental to the summit,
participants can take advantage of the Sunrise EC running club led by Ethical
Corporation MD Liam Dowd, a mingling of SDG-focused networking, whereby
attendees can share ideas, and the Start-up Showcase where one can benefit from
innovators to aid in the acceleration of goals and ambitions.
Next month The Spring Investor Summit arrives in New
York between April 1 and 2. This event facilitates
the networking of small and microcap firms with high-level, institutional and
retail investors. Set in the stunning Essex House, participants can enjoy the
conference while looking out at New York’s Central Park! Hailed as “the fastest
growing investor conference in the country,” its goal is “to highlight the most
compelling publicly traded companies under $5 billion in market cap across all
sectors.” 200 companies will present;
1,200 institutional and retail investors will be present and 2,000 one-on-one
meetings will be held.
Transportation issues in New York City
are nothing new. Parking is horrendous;
driving is awful and the subway has never gotten the best rep. But now a recent report has found that approximately
one third of New Yorkers do not even live within walking distance of a subway
stop. Plus, this issue seems to fall overwhelmingly
within lower-income concentrated neighborhoods like Brooklyn and northeast
NYC’s transportation problem is not limited
to the subway. Dockless bike and scooter
firm Lime also commissioned a study and its conclusions were similar in that
again it is the poorest neighborhoods taking the fall for lack of viable
transportation options. With Lime, Bird
has been lobbying officials in the city to improve micromobility. And Lime is arguing that if e-scooters became
legal, this would improve the mobility of 1.5 million New Yorkers, providing
them with much better access to local transit.
With a scooter, they could actually be a mere 10 minutes away from subway
There have been some strides though in
this area. In 2018 an endeavor was taken
by the New York City Department of Transportation (DOT) to introduce a dockless
bike share program in underserved areas via Citi Bike.
And in other transportation news for
the city, we are about to witness the end of the MetroCard. Plans from the MTA include the testing of a
new fare payment system, dubbed OMNY – One Metro New York in an effort to
enable New Yorkers to “experience all that the region offers.
for clothing has never been easier or more choice-oriented. Do you want to actually go into a real store,
or would you like to browse various outfits from the comfort of your couch? In other words, if you’re in New York (or
other fashion capitals around the world) what is your preference: online or inhouse?
American clothing purchases are on the increase (27% in 2018 compared to
20.7% in 2015), these figures still suggest people are choosing to go into a
store and try on the clothing. It seems
that figures are increasing but that people still want to actually put
on a piece of clothing to see how it looks and feels.
where is New York in all of this? Well, Black
Friday figures for 2018 instore sales dropped by 7 percent with online sales
increasing by 24 percent. Still,
evidence is showing that both options are attractive to shoppers and for
different reasons. Therefore, the ultimate answer might be just that; to keep both online and instore
clothing stores stocked. In New York
some stores are getting their heads around that concept.
example of this is direct-to-consumer brand Wardrobe NYC. Originally launched in
2017 exclusively as an online store, the luxury clothing store founded by
Christine Centenera and Josh Goot just opened a pop-up in Soho. Its plan is to
remain open temporarily – just until March 24 – and will offer customers all
three of the brand’s existing collections: Tailored, Sport and Street. The concept behind the firm’s anti-fast
fashion brand is the production, manufacture
and sale of apparel in a streamlined way to simplify choosing everyday