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Michigan firm could merge with Ohio firm

A Michigan-based money management firm, Munder Capital, could end up merging with an Ohio-based firm called Victory Capital Management Inc. This comes in the wake of an attempted sale that never went through. In November of last year, Munder Capital was offered up for sale, and the desired price point was reportedly around $400 million. However, when the offers actually came in, the highest one was reported to be around $280 million. Since this was so much lower than the objective, the sale was cancelled.

A spokesperson for the group said that there was some overlap between the two businesses. They also said that they thought that the pair of companies would both be stronger if they merged together.

Many mergers are made for this same reason, as attempts to keep companies strong if they are not doing as well as desired on their own. Those who are interested in performing a merger do need to know about local business laws, specifically looking at what would be allowed within the new agreement. When the merger crosses state lines, extra information may be needed to see if any special arrangements would need to be made to adhere to the laws in both states.

This case in particular is interesting because Munder was last purchased in 2006. At that time, it brought in a price of $302 million. This shows that the current offers for the company would mean that the group that owns Munder -- Crestview Partners LP -- would lose money if they sold for $280 million. However, Munder's president has stated that he wants the company to grow on the far side of the recession, a hope that has so far not been realized.

Source: Crain's Detroit Business, "Munder Capital could merge with Victory Capital, Ohio" Tom Henderson, Apr. 15, 2014

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