Verso Paper Corp announced it will acquire NewPage Holdings, Inc. in a deal valued at $1.4 billion. While the coated paper industry is in decline due to the rise of digital media, this acquisition could make Verso Paper and NewPage stronger, according to CEO David Braun. Read his entire analysis in the Memphis Business Journal. Photo …
Tag: David Braun
Due Diligence: The Three Buckets of Critical Information
In performing due diligence, I recommend you look not only for risks but also for opportunities. That’s how I approach due diligence for our Capstone clients. As we examine the seller’s operations and books, we place every new discovery in one of three color-coded “buckets:” Red Bucket: Deal Changers. This is information that materially alters …
Facebook Offered $3 Billion to Acquire Snapchat
Facebook’s $3 billion offer to buy Snapchat points to a growing number of mobile technology acquisitions. Yesterday The Wall Street Journal reported Facebook offered $3 billion to acquire Snapchat. While Snapchat has declined, Facebook’s offer points to growing trend of technology companies acquiring rather than building new mobile apps. Most recently, we’ve seen a string …
Signs You May Be Buying the Wrong Company
Buying the right company is essential, but it is difficult. It may be easier to eliminate the “wrong” companies – prospects with glaring due diligence issues such as theft or lawsuits, or even more subjective issues like a poor cultural fit. However, the decision is not always so black and white. How can you know …
Sharing Successful Acquisitions with the Chief Executives Club
The Chief Executives Club of Rhode Island has invited me to speak at its breakfast meeting on November 7 in Providence, Rhode Island. The club, whose members are senior executives, annually hosts 10 of these meetings, where America’s top business thought leaders and authors share their views on a wide variety of leadership topics. I …
Successfully Integrating Different Cultures
Cultural alignment while integrating two companies is a hot topic in the M&A world. For instance, CFO.com recently quoted Jonathan Chadwick as saying, “The number-one reason I think deals fail is because there was not an agreement or a matching of cultures.” Should you have any doubts, read about Kidder-Peabody inside of GE. Those cultures …
How Acquisitions Can Help Small Businesses Grow
Did you know about 97% of acquisitions are small to mid-sized companies? Acquisition is an effective tool that can be used by companies of any size, not just those in the Fortune 500. To see how, watch my interview with Matthew Lesko. When we think of mergers and acquisitions, we often only think of mergers …
Why Do Acquisitions Fail?
Acquisitions fail for reasons that range from lack of compelling strategic rationale to inadequate due diligence to conflicting cultures. I think many would say acquisitions fail because too much was paid for them. While overpaying is certainly a reason for failure, I would not say it is the top reason. In my experience, I have …
How to Increase Success of M&A
A recent Deloitte survey noted frequent misalignment between CFOs and company directors about the strategic rationale of M&A. The study concludes that CFOs and board members should align their M&A strategy for greater success. Naturally, I’m not surprised by these findings. The likelihood of successful acquisition would increase if all parties shared the same strategy. …
How to Get a “Fat Cat” to Buy Your Small Business
How do you get a large company to buy your small business? In this video interview with Matthew Lesko, I’ve shared some of my tips & tricks. In many ways, selling a company is like selling a house. My number one recommendation is to make your company easy to buy. How can you do that? …
