Printer Friendly

STATE'S COUNTIES AND CITIES TO SELL OFF MORE BUSINESSES, LEADING MERGERS AND ACQUISITIONS ADVISER SAYS

 IRVINE, Calif., Jan. 27 /PRNewswire/ -- California's ongoing budget problems will force more counties and cities statewide to sell municipally owned airports, golf courses, hospitals and jails to private buyers, according to a leading mergers and acquisitions adviser.
 "Once again, California is setting the pace, this time as forerunner to a growing national trend toward more and more government-owned business operations being transferred to private hands," said Conrad J. Tuerk, Irvine-based investment banker.
 On Jan. 13, Tuerk successfully completed the sale of Barstow Community Hospital to Community Health Systems Inc., a Houston- headquartered public company. Tuerk initiated the transaction, assisted in the negotiations leading to its conclusion and acted as financial adviser to the City of Barstow.
 Barstow Community Hospital is a 56-bed acute care facility, which was city-owned. "The city had decided to divest the facility to a professional operator better able to manage the institution in today's fast-changing health care environment," Tuerk explained.
 "Privatization -- private ownership and operation of government businesses -- is emerging as the fastest-growing segment of California's mergers and acquisitions marketplace," he stated.
 "Continuing fiscal difficulties are forcing California's counties and cities to privatize essential public services like hospitals, airports, jails, as well as recreation services like golf courses, arenas and marinas," Tuerk added.
 "Privatization of government businesses means that the counties and cities can meet their mandates of balanced budgets. It enables government officials to eliminate cash drains with the proceeds going directly into municipal coffers," stated Tuerk.
 "The best news for California county and city officials is that 1993 is an ideal time to privatize. Currently, there is a surplus of cash-rich buyers ranging from large public corporations and private companies to private investment groups and high net worth individual investors," Tuerk reported.
 "Don't overlook the offshore investor as an active buying force. In 1991, we were retained by the City of Alhambra to sell the Alhambra Community Hospital, a 157-bed acute care facility. We were successful in selling it to a Taiwanese investor for a price of nearly $10 million," Tuerk revealed.
 "Recognizing that privatization is a political and legal minefield, it will take experienced advisers to guide county boards and city councils through the complex sale process," said Tuerk.
 Tuerk & Associates is an Irvine-headquartered mergers and acquisitions services organization, specializing in the sale of privately owned, mid-size California businesses, as well as the privatization of municipally owned businesses.
 -0- 1/27/93
 /CONTACT: Conrad Tuerk of Tuerk & Associates, 714-251-0400/


CO: Tuerk & Associates ST: California IN: FIN SU: ECO

KJ-LS -- LA001 -- 9634 01/27/93 12:01 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 27, 1993
Words:424
Previous Article:STOCKHOLDERS OF BANKUNITED APPROVE CHARTER CHANGE & FORMATION OF HOLDING COMPANY; CHAIRMAN PREDICTS RECORD EARNINGS FOR 1993
Next Article:UNOCAL LAUNCHES CHAKACHATNA PROJECT
Topics:


Related Articles
1996 TO BE YEAR OF THE SELLER FOR MIDDLE-MARKET BUSINESSES
Tarmac close to pounds 1.8bn merger; Independence road ends after 93 years.
RECORD MONEY; Watch out for cowboy tax experts.
Why mergers cause such headaches.
KPMG Corporate Finance Is Named Mid-Market Adviser of the Year.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters