The US may be the largest economy, but the 15 fastest growing economies are in Africa or Asia with Ethiopia topping the list with a projected GDP of 7.9% for 2019. For comparison, the US GDP was 2.2% in 2018. Access to these fast-growing markets is one of the primary drivers for international expansion. In …
Category: M&A in the News
Robust Middle Market Mergers & Acquisitions Activity in 2018, But Some Caution Moving into 2019
Capstone Strategic’s survey shows mergers and acquisitions (M&A) activity remained robust with 52% executing deals in 2018 up from 44% in 2017. While 38% observed more activity in both 2018 and 2017, fewer (11% vs. 27%) are 100% certain they will pursue M&A in 2019. Leaders from various industries generally reported a positive picture of …
Need a Place to Stay Tonight? Airbnb Has You Covered with HotelTonight Acquisition
Ahead of the company’s IPO, Airbnb has agreed to purchase HotelTonight, a booking service for last-minute travelers. While the purchase price is undisclosed, HotelTonight was valued at $463 billion two years ago. The acquisition was made to capture the growing demand for same-day bookings, according to Chief Executive Brian Chesky. HotelTonight will be kept as …
M&A Update: Full Year 2018 – M&A Surpasses $4 Trillion
Despite economic and political instability throughout the year, global M&A value surpassed $4 trillion in announced deals in 2018, a 12% increase from 2017. M&A value in 2019 fell short of 2015’s record high of $4.3 trillion. The number of deals worldwide declined by 4% when compared to 2017 to 47,585 announced deals. Buyers and …
Fintech M&A Heats Up in 2019
Fintech startups are disrupting traditional financial institutions as consumers rely more and more on technology for everyday activities, including banking. Robust M&A activity is expected to continue in this space. It’s not only banks and credit unions that are acquiring or investing in fintechs, established technology firms like Amazon are snapping up these startups in …
United Technologies Splits into 3 to Grow Long-term
M&A is not always about getting bigger. Often, it’s about recalibrating a business to focus on core competencies and long-term growth. On November 27, United Technologies announced it would split into three companies by 2020. United Technologies will focus on aerospace, Otis on elevators, and Carrier on air-conditioning and HVAC. United Technologies Chairman and CEO Gregory …
After Midterm Elections, What’s Next for Mergers & Acquisitions?
Historically elections have been a source of uncertainty for the business community which can slow mergers and acquisitions activity. Now that the midterm elections have passed, what’s next for M&A activity? 2018 has been one of the most active years for dealmaking – with M&A deal value hitting a new high of $3.3 trillion globally. …
Facebook Looks to Boost Cybersecurity with Acquisition
Facebook is said to be the latest firm looking to bolster its cybersecurity capabilities through acquisition. Facebook recently detected a breach affecting 30 million users. This latest news comes on top of the Cambridge Analytica scandal, and has negatively impacted the technology giant. Cyber security is increasingly an area of concern for many companies across …
How Buyers (Unintentionally) Destroy Acquisition Value in Integration
Integration proves to be one of the most difficult pieces of the M&A puzzle to get right. Buyers often try integrating the target’s systems into their own, only to realize too late they are destroying the very value they wished to acquire. Large food companies are learning this lesson from past mistakes and adjusting their …
M&A Update: 3Q 2018
Global M&A value reached $3.3 trillion in the first nine months of 2018, an increase of 37% while the number of deals decreased by 9% when compared to the same period in 2017. Despite this record-breaking M&A activity, announced deals in the third quarter slowed by 32% to $743 billion when compared to the $1.2 …
