What We Look For

While IMS is always interested in possible acquisitions, not every trade exchange is a good fit to unite with us. There are several key components that we look for when making this decision, such as:

• Key staff who are staying on post-acquisition
• Good industry reputation
• Modest reciprocal balances
• Varied membership list
• Profits or economies of scale
• Good company culture
• Ability to bring in new members with existing staff
• Active restaurant clients

Just as there are positive attributes that we look for when deciding if it makes sense to bring an independent trade exchange into the fold, there are also a few items that may discourage such a deal, including:

• An owner who was the principle dealmaker
• Larger exchange deficit
• Low percentage of big-volume traders
• Key clients with large positive balances
• Exchanges who practice unsavory sales practices
• Large pre-bought scrip/certificate inventories
• Low percentage of sellers within the exchange
• Clients with lack of sales within a given time frame
• A physical showroom
• Monthly cash payment average below $40/member
• Close proximity to favored trading partners
• Poor reputation in the industry
• Cash-out deals are a way of sustaining revenue