I decided to answer a very basic, but important question about M&A, given that we often talk about strategic acquisitions. Q: What’s the difference between a financial and a strategic buyer? A: A financial buyer brings little inherent value to the transaction. Typically they bring capital and capital allocation knowledge, but usually no specific knowledge …
Category: M&A and External Growth
Aggressive Lending, Bigger Deals… M&A is Back on the Move
There’s no denying it that M&A is on fire. Look at any financial newspaper headlines and you’ll see announced deals or merger talks. And keep in mind for all the major transactions involving publicly held companies there are many smaller, privately held transactions occurring unannounced. We can better understand this current wave of activity and …
When Organic Growth Stalls, Consider M&A
Robust mergers and acquisitions activity is often an indicator of economic growth, but the recent flurry of deals do not reflect a confidence in the economy, Andrew Ross Sorkin writes in Dealbook. Revenue growth of US companies has declined from 11.2% in 2010 to 5% to 2020, a Citigroup report indicates. “Strategic actions such as M&A…have become a key …
David Braun Speaks on Using M&A to Drive Growth in Biofuels Despite Uncertainty
David Braun presented on mergers and acquisitions at Oleofuels 2015 in Frankfurt, Germany. As overall energy demand increases, biofuels continue to play an important role in environmental sustainability. Global biofuel production reached 115 billion liters in 2013 and is expected to grow to 139 billion by 2020. Despite this increase, the dynamics of the industry …
The Role of Corporate Secretaries in Mergers & Acquisitions
Capstone Managing Director John Dearing spoke at the Society of Corporate Secretaries Governance Professionals‘ Middle Atlantic Chapter Spring Conference on May 28. He participated in the Corporate Secretary’s Roundtable and shared advice for corporate secretaries during M&A. Corporate secretaries play an important role which often extends beyond administrative duties to implementing decisions of the board …
Aligning Buyer and Seller Functional Leaders in Due Diligence
Q: “What if the buyer and seller functional leaders do not match? How do you coordinate the two sides?” We take a functional approach to due diligence where we encourage your leaders from sales, marketing, finance, operations and other functional areas to meet with their respective leaders on the seller’s side. A functional approach ensures …
What Employees Really Think ─ Conducting HR and Organizational Due Diligence
People are critical to the success of your company, and it’s no different in the business you are acquiring. But how can you go beyond the surface and find out what employees really think? It is doubtful employees will be completely open and honest when asked point blank, “Do you like your job?” One of …
The Return of the Mega Deal? Understanding Today’s Market
The top five deals announced in Q1 2015 were all well above $10 billion. In comparison to last year, the number of mega deals announced, or acquisitions over $5 billion, doubled. Last year there were 14 mega deals in the first quarter and this year there were 28. Despite the record-breaking activity of Q1 2015, …
Endo Grows Generic Drug Business with Par Pharma Acquisition
On May 18, Endo announced it would acquire Par Pharmaceutical for $6.5 billion cash and $1.5 billion stock. The acquisition is the latest consolidation in a robust M&A market, especially in the healthcare sector. Endo has stated multiple reasons for the deal, including building its generic drug platform as well as significant operational and tax …
