A Guide to Creating a Limited Liability Company LLC
American Financial Corporation is a direct holding business with 53% of its shares held by non-family members. It is one of the largest non-bank shareholders with a combination of commercial and investment banking activities. This international business corporation was started in 1948 and is headquartered in New York City. It is also one of the six original members of the New York Stock Exchange (NYSE). The corporation operates five floorspace from seven hundred to two thousand feet in height with the main headquarters located at One World Trade Center.
American Financial Corporation has four main subsidiaries and they are Bank of America (FACO), American Home Mortgage (AMPC), Commercial Bridge Loan Corporation (CLE), and the Guaranty Insurance Company (GYC). The Bank of America has branches in all fifty states and they have retail mortgage giants, such as Bank of America, US Bank, Chase Manhattan, Wachovia, and Citibank. AMPC is the lender of last resort for home mortgage companies, like Bear Stearns and Fleet Financial. Commercial Bridge Loan Corporation loans corporate and commercial financing. GGYC is a guaranty insurer which guarantees payment on a guaranteed basis.
The Great Life insurance company is an indirect holding company of American Financial Corporation and is a subsidiary of the two companies. This international company specializes in all types of disability insurance and medical insurance. It has a direct link with the major life insurance companies such as AIG, Delta, State Street, and Washington Mutual. It also has extensive business relationships with disability, health and life insurance companies.
American Financial Corporation also has two wholly owned subsidiaries, American Home Loans and American Home Equity. AMP is mainly engaged in the refinancing and home equity loans segments. It is also involved in the sale of debt securities and in commercial mortgage servicing. AMP has direct investment in a number of home finance programs through banks and brokers. It has no direct exposure to the financial sector, although it has certain indirect interests in that area.
Another great life insurance company of AMP is Galic. Digital Waves is a wholly owned subsidiary of AMP. This company is involved primarily in the home mortgage insurance business. It has many and outsourced functions to complete. It also has a large retail insurance business. It is deeply involved in the property and casualty market.
The other holding company of AMP is American Home Construction. This company has diversified business segments including building construction, home remodeling and renovation, mobile homes, and other specialty home improvement services. It also has various other activities in the property and casualty insurance industry. AMP has direct exposure to this portion of the home insurance business.
The other holding company of AMP that I will mention is Galic. Like American Home Construction, Galic is largely involved in the property and casualty insurance industry. It is not as large a company as AMP, but it is still a significant competitor and therefore plays an important role in the overall consolidation of the AMP system.
In conclusion, there are a number of excellent companies to consider merging with AMP. These include both a large insurance company and a property and casualty processing company. A good merger strategy should evaluate the total assets and equity of both the acquiring entity and the acquiring company, the potential expansion opportunities created by the acquisition, and the potential management and operating synergies between the two entities. The primary goal should be to increase the revenue of an AMP and to increase the market share of an AMP underwriters.
One potential reason for merging two AMPs is to create a one million dollar cap equity for the acquiring company. If a company is able to achieve such a merger, they would become one of the largest holders of AMP common stock. They could then use this equity to acquire an underwriter or write an additional underwriter note. Many AMP holders have been successful at creating multiple notes and using them to purchase AMP notes.
One potential drawback to an AMP acquisition is that the acquiring entity may be required to pay UBIT to the acquiring company. UBIT is the fee the AMP holder would need to pay to the AMP if they wanted to cash in on their national general partnership (NPG) agreement. If the AMP had only issued common stock, then they would not have needed to pay UBIT; however, if the AMP had used their Hold Company definition, then they would have needed to give up some of their ownership in the AMP.
In conclusion, there are many reasons that companies merge to form a limited liability company (LLC). The most important reason is usually to create greater value and liquidity in their shares of common stock. However, mergers and acquisitions also allow a company to combine with other well-established, financially secure corporations to create an excellent combination of low-end and mid-end cap equity. All types of sophisticated cap structures can be used to create tremendous value and liquidity in any number of publicly traded non-real estate common stocks.
