Dear Friends and Family,

This month we’re sharing thoughts on mergers and acquisitions. There are three main reasons for these deals:

• Personal incentives: Executives receive higher pay, bonuses, and immediate gains. Investment bankers collect large fees. These often don’t benefit shareholders, so we may recommend selling.
• Business troubles: Mergers can conceal past poor performance. Firms may write off failed ventures as ‘merger-related expenses’ to boost future earnings.
• Strategic alignment: The ideal case—successful mergers depend on integrating systems and cultures, though few succeed.

Our “Focusing on the Financial Future” seminar answers common questions about the market and our investment strategy moving forward. Larry discusses causes of the downturn, overlooked good news, and how we’ve added new asset classes.

Join us May 14, 2009 at our Issaquah office for this lunchtime seminar. Contact Sue or Vicki to RSVP.

A final note: getting a good night’s sleep can boost your health and your humor. Eat light in the evening, avoid caffeine, and manage stress with exercise, relaxation, or laughter.

Sincerely,

Katz Family Financial