Integration is key area of concern for many involved in mergers and acquisitions. According to a survey by Deloitte, 37% of directors and 43% of CFOs named post-deal integration as their top concern. About 47% of executives believe “people problems” in M&A are more prominent now than 12 months ago. So how can we overcome …
Category: M&A and External Growth
M&A – The Route to Success?
The polyolefins industry, like so many others, is evolving significantly. Growth in emerging markets and Asia has skyrocketed while European and North American markets have matured. Last week I was invited to speak at the Future of Polyolefins Conference 2014 in Dusseldorf, Germany, where top executives from key industry players such as Borealis AG and …
Closing the Deal: Lessons Learned from the LA Clippers Sale
The ability to move quickly can be crucial in successfully closing a deal. A large part of that means having financing ready so you can swiftly respond to the seller’s decision. I was reading a post about Steve Ballmer’s $2 billion acquisition of the LA Clippers that illustrates why having your financial package prepared is …
Tyson Foods Wins Fight for Hillshire
Two of the largest chicken producers, Pilgrim’s Pride and Tyson Foods, have been fighting over Hillshire Farms. On Monday, Tyson Foods raised its offer to $63 a share in cash, which values Hillshire at $7.7 billion. Last week, Pilgrim’s Pride had raised its bid 22% to $55 a share; however Pilgrim’s Pride has withdrawn its …
Pharmaceuticals Refocus and Consolidate
Pharmaceutical companies are using acquisition to become “pointy,” or more focused. Two recent examples are Bayer and Merck. Bayer is focusing on over the counter medications by acquiring Merck’s consumer care business for $14.2 billion. On the other hand, Merck has become more streamlined through divestment. As I’ve mentioned before, although divestment means becoming smaller, …
What Business Are You In?
Let’s admit it right away: This is a trick question. The correct answer is usually not the first answer. Here’s a classic example from the annals of corporate America: Union Pacific thought they were in the business of railroads—the commonsense answer. In reality, they were in the business of mass transportation. Had they recognized this early …
Publicis – Omnicom Merger Breaks Up Over Culture Clash
Pubicis and Omnicom have called off their proposed $35 billion merger that would have created the largest advertising agency in the world. According to reports, Publicis CEO Maurice Levy and Omnicom CEO John Wren disagreed over many details, including filling key management positions and corporate structure. This comes as no surprise to me. Ten months …
Why Pfizer Really Wants to Acquire AstraZeneca
Pfizer looks to AstraZeneca acquisition to bolster its drug pipeline and reap tax savings. Pfizer’s $119 billion bid for AstraZenca indicates a change in strategy for the company. According to the Wall Street Journal “A big deal, potentially worth $100 billion, would mean Pfizer is shifting from its steady diet of cost-cutting and reorganizations over …
Due Diligence and Integration – From Research to Action
Due diligence and integration fit hand in glove. Simply put, due diligence is the research and integration is the action. For example, due diligence and integration work hand-in-hand when you address benefits, such as healthcare, vacation, tuition reimbursement, paid time off, subsidized cafeteria plans and other perks. Deciding what to do with them is one …
Midmarket Deal Flow Expands
Midmarket deal flow expanded at the fastest rate in six months, according to a study conducted by Mergers & Acquisitions in April. The survey has positive implications for midmarket growth. As I’ve mentioned previously on my blog, midmarket companies have faced increased competition from larger players and small mom and pops. Faced with this “squeeze,” it’s …
