For years the question of what to do with excess cash has always been the same: Does a CEO invest the capital in R&D hoping for a possible return? Does the individual simply return it in the form of dividends to shareholders? Sit on it for as long as possible (and in today’s economy earn about 1%)? Or does the CEO take the risk and begin making acquisitions?

Historically, this dilemma typically arises as the economy swings out of a recession. Having slashed expenses during the downturn, strategics usually have excess cash available during the early phases of a recovery. [Read more…]