March madness is in full swing as basketball fans across the U.S. excitedly (or anxiously) watch the games. Hopefully your bracket has survived this weekend, despite a number of major upsets. As we wait for March Madness to resume this Thursday with the sweet 16, let’s turn our attention to another craze that is sweeping …
Category: M&A and External Growth
Valeant Acquires Salix in the Latest Wave of Pharmaceutical M&A
Yesterday, Salix Pharmaecuticals accepted Valeant’s raised takeover offer of $10.96 billion in cash, ending the bidding war between Endo and Valeant for the gastrointestinal drug maker. Valeant’s new offer of $173 per share is about a 10% increase over its original offer of $158 per share. Valeant also paid $296 million for assets of bankrupt …
Credit Unions Embrace Strategic Mergers and Acquisitions
Credit unions have in the past year or so embraced strategic mergers and acquisitions with fervor. This was especially evident at the CUES Execu/Summit I spoke at last week. While strategic M&A in the credit union industry is not new, I’m excited about the enthusiasm that now surrounds the topic. Capstone has been active in …
David Braun Speaks on Strategic M&A at CUES Execu/Summit
Capstone CEO and author David Braun will present “Grow or Die: Strategic Mergers and Acquisitions” at the CUES Execu/Summit on March 3, 2015 at Snowmass, Colorado. CUES is a leading organization dedicated to educating credit union professionals, directors and suppliers. About 80-90 executives and board members from the credit union industry will attend the Execu/Summit …
Zillow Keeps Trulia Brand In Acquisition
There are many different ways to handle brand integration – whether it means discarding the target’s brand in favor of your own, keeping both brands, or creating a new one. Each strategy is valid, depending on your brand equity and strategic rationale for acquisition. Let’s look at a live example: In its $2.5 billion stock-for-stock …
How Can You Manage Mergers and Acquisitions Risk?
Acquisitions are one of the fastest ways to grow, but they do come with their own set of risks. Industry numbers show that about 70% of acquisitions fail, so executives are highly motivated to mitigate their risks when purchasing a company. This can be done in a number of ways. Usually we think about hiring …
Why Price Is the Last Thing to Talk about When Buying a Company
Time your negotiations by understanding owner psychology. Everyone wants to talk about price in mergers and acquisitions. It’s often the number one focus of buyers and sellers…but for opposite reasons. Both are likely to say they are looking for a “good deal,” but this can have a completely different meaning depending on the perspective. Buyers …
Using Strategic Mergers and Acquisitions to Adapt – Credit Union Times Op-ed
John Dearing, Capstone Managing Director, was asked to write an op-ed for the Credit Union Times about the ways that credit unions can find additional sources of non-interest income. I’ve included part of John’s article below: Every industry faces change and the credit union industry is no different. Market developments and new regulations are challenging credit unions …
Strategy, Not Equity, Should Drive Integration
When it comes to integration, people often think equity ownership should determine their approach. If they own 100% of the business, they should change all the target’s practices to their own. In a strategic alliance where neither side can force the other side to do anything, they might not integrate any of the practices. But …
Strategic Acquirers at an Advantage in Today’s Market
If you’re strategic acquirer, 2015 will be a good year for you. In 2014 we started to see companies, especially strategic acquirers be more aggressive about M&A. This likely will continue and even accelerate in 2015, especially since many still have a record amount of cash on their balance sheets. While we’ve had a pretty …
