NeoCon 2008  

June 2008 – Charlotte, NC

NeoCon 2008 was positive this year, despite the rumored 20%+ decline in attendance. We felt the building was full of energy and upbeat. Many folks attribute the decline to a weak economy, high fuel costs, and the cancelled flights due to bad weather. Some hot topics included:

●          Green:  Everyone feels a need to move towards green certified and LEED designated products and projects; however, there are many shades of green. Be on the lookout for increased standardization on how to define these important and necessary terms.

●          China:  While China remains a major player on the world stage, we are all seeing the massive price increases (20%+) from Chinese goods and the concerns over lead times, freight costs, and reliability. We believe Mexico will return to favor as a low-cost manufacturing destination for US goods.

●          Mergers & Acquisitions:  We remain busy in the M & A business, both with strategic buyers and Private Equity Groups (PEGs). Earlier this year we were please to announce the sale of AVA Furniture Group to Mayline, and in May we announced the sale of Mark David to Kohler Co.

            Deal discussion was brisk among the large and small owners at NeoCon, and we are confident there will be addition transaction announcements soon in all portions of the office and contract world.

            Asians remain interested in acquisitions, as their low cost manufacturing base erodes, putting more pressure on them to have sound businesses models with US sales, marketing and distribution systems.

            Valuation multiples remain strong, despite a slowing economy and tight credit markets. We encourage all our clients to know what the value of your company is, whether or not you are a seller! We can help with this valuation process and would be happy to do so.

Please contact us if we can be of assistance to you.  Of course, all discussions will be on a strictly confidential basis.