The M&A Dating Game: This Postage Stamps Exporter

The first article in our 'M&A Dating Game' series of M&A opportunities is about a postage stamps exporter. Who's missing out?


29 April 2014

M&A Dating Game - Merger and Acquisition opportunities

Intralinks recently released the latest Deal Flow Indicator™ (DFI) Report. Compiled through the end of March 2014, the latest data shows a 16 percent increase in year-on-year (YoY) early-stage global M&A activity. While the findings certainly look great, it got me thinking – who’s missing out on these trends?

Looking back through public records since 1984 (the earliest I could find), I found 14 countries, territories and regions that fit the bill. These locations have never – I repeat, NEVER – had an M&A event. EVER.  In my opinion, there’s so much that these countries have to offer - it’s a shame that they’re being left out. Therefore, I have decided to take it upon myself to drum up some business for them. Just so you know, I ask for nothing in return (except possibly a cut of future action).

So without further ado, the first country in our series is the 233rd largest nation on the planet….

TOKELAU!

Tokleau

The Facts

Tokelau, a constitutional monarchy under British rule, is less than 4 square miles large and is located “north of the Samoan Islands, … east of Tuvalu, south of the Phoenix Islands, southwest of the more distant Line Islands, and northwest of the Cook Islands.” If you’re still asking yourself where in the world Tokelau is, then let me summarize: the middle of the Pacific Ocean, nowhere close to anywhere that’s easy to get to and likely not close to anywhere you’ve ever heard of.

Tokelau is made up of 3 small islands with a rotating capital. Their population and GDP rival a small company – 1,400 people and $1.5M, respectively. Tokelau’s GDP is the smallest in the world, which only means an upside for a savvy investor!

Why You Should Buy Right Now

Tokelau exports postage stamps, handmade goods, and coconuts for coconut oil extraction purposes. It is also the first and only nation on the planet to meet 100% of its energy needs from solar power. This could be a great opportunity for a company involved in making cosmetics or skin care products (an industry forecasted to reach over $600B by 2017) or even biodiesels. Building a coconut oil processing plant might actually be a good idea too – with very low energy costs, it would pay for itself in no time. Before you start your due diligence, don’t forget that given Tokelau’s remote location, shipping costs to anywhere outside of Australia or New Zealand would likely be very high.

I hope this information encourages you to get down to Tokelau ASAP! Stay tuned for the next installment of ‘The M&A Dating Game’ for more great M&A opportunities.

As a hint for next time, we’ll be covering the island country where Elton John, Pink Floyd, Rolling Stones, and Rush recorded some of their albums. Yep, it’s a head scratcher...take your guess as to which country I’m referring to in the comments section below.



Ronen Cohen

Ronen Cohen

Ronen is a Senior Associate in Strategy and Product Marketing at Intralinks where he helps shape the direction and marketing of Intralinks Dealspace and DealNexus for the M&A community. Prior to joining Intralinks, Ronen was a management and strategy consultant for several years. Ronen has also worked in the financial sector, specifically in the venture capital and private equity fields. He graduated from New York University’s Stern School of Business with a dual degree in Economics and International Business, with a specialization in Entrepreneurship.