As expected, mergers and acquisitions activity in 2018 is off to a strong start with deal value already reaching $2 trillion this year. Tax reform, which lowered the corporate tax rate from 35% to 21% has certainly impacted activity as many companies are already putting their tax savings to work in deals. One interesting trend we’ve seen …
Tag: consolidation
Pharmaceutical M&A: The Rush to Acquire
Last week alone, there were three major consolidations in the pharmaceutical space: Teva will acquire the generic business of Allergan Hikma pharmaceuticals will acquire Roxane, Boehringer Ingelheim’s generic drug business Mylan will acquire Perrigo These three deals in just a few days reflect the trend of pharmaceutical consolidation as companies seek new products in order to …
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, …
Buffett Expands in Europe, Acquires German Motorcycle Company
Berkshire Hathaway has agreed to buy a German maker of motorcycle apparel and accessories, Detlev Louis Motorrad-Vertriebs, for approximately 400 million euros ($456 million). Despite the current market conditions, Warren Buffett, once again demonstrates that opportunities can be found in any market. He sees Europe as an opportunity for growth, calling the purchase a “door opener” …
Tuna Producer Casts a Wider Net With Acquisition
Chicken of the Sea owner, Thai Union, leverages economies of scale in Bumble Bee transaction. Thai Union Frozen Products, announced that it would acquire Bumble Bee, the second-largest tuna company in the U.S., for $1. 5 billion. Although Thai Union is the number one global producer of canned tuna, this acquisition will help boost Thai …
Why Did Buffett Buy Duracell? Finding Growth in Mature Markets
At first glance you may ask, “Why in the world would Warren Buffett buy Duracell?” One explanation is financial. Through a bit of fiscal engineering Berkshire Hathaway is able to avoid triggering significant taxes. The Duracell transaction, is essentially a merger through a stock swap. Berkshire will give P&G $4.7 billion of the shares it …
Cost Synergies Ill-Suited for Long-Term Growth for Men’s Wearhouse
After battling for six months, Men’s Wearhouse and Jos. A. Bank finally came to an acquisition agreement on March 11 for $1.8 billion, forming the country’s fourth-largest men’s retailer. Men’s Wearhouse expects cost synergies of $100-150 million over the next three years to result from the deal, including the benefit of better purchasing power. While …
Focusing On the Right Growth Opportunities
The following question was asked during our most recent webinar, “Discovering Markets.” Q: How do you choose which quadrant of the opportunity matrix to focus on? A: When beginning to plan for external growth, you may be blown away by the sheer number of possibilities and options. As exciting as they may appear, you’ll have …
What Consolidation Means for the Middle Market
Last week, Sysco announced it would buy rival US Foods for nearly $3.5 billion. Sysco is already a huge player in the food industry with customers ranging from the US military to schools to five-star restaurants. This deal brings together the two largest food distributors in the US, increasing Sysco’s share of the food distribution …
Credit Union Times: CUSO Consolidation Should Begin With Benefits
Every company is for sale, for the right equation. This maxim applies to companies in any industry, including credit unions and CUSOs. In “CUSO Consolidation Should Begin With Benefits” the Credit Union Times reports insights from Capstone’s webinar with NACUSO presented by Managing Director John Dearing. Read the entire article here: “CUSO Consolidation Should Begin With Benefits.” …
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