It’s no surprise that credit union consolidation continues; it is estimated that there were 65% more mergers in 2015 than in 2000. Overall, there were about 15% fewer credit unions in 2015 than in 2011. While there are fewer players today than in previous years, the credit union market is not shrinking or in decline. …
Tag: M&A
Why Use a Nonbinding Letter of Intent?
There are many tools available to help move a transaction forward, ranging from a simple handshake agreement to a formal purchase agreement with contingencies. We have found one of the most useful tools for moving the M&A process along is the nonbinding letter of intent. To further understand the advantages of the nonbinding LOI, we’ve outlined …
Verso Files for Chapter 11– What Went Wrong?
Capstone CEO David Braun’s Analysis in the Memphis Business Journal Verso Paper, after acquiring NewPage Holdings for $1.4 billion in January 2014, has filed for Chapter 11 bankruptcy. Verso, which manufactures coated paper used in products like magazines, is struggling in a declining market. With its new acquisition, the company failed to realize desired economies …
5 Tips for Taking a Strategic Approach to M&A in 2016
Acquisition can be a powerful tool for accelerating your company’s growth. 2016 may be the year you build on your capabilities, add new services or products, gain new customers or enter new markets. However, it’s important not to get swept away in the excitement of a deal and to remain strategic. A carefully planned, strategic …
4 Reasons Why Focusing on Small Acquisitions is Best
In light of recent FTC rulings against market domination, Sysco has changed its M&A strategy to focus on smaller, strategic deals rather than large transformative deals. Although Sysco’s change is motivated by regulatory obstacles to larger acquisitions, using strategic, smaller deals is an excellent approach from a strategic perspective. We have long recommended that our …
How Will Your Credit Union Grow?
Credit unions’ traditional use of consolidation as one way to grow is a trend likely to rise over the next five years, according to industry experts. While the percentage of these deals climbs, there actually are fewer mergers because there are fewer credit unions. There were 4% fewer credit unions in September 2015 than one …
Middle Market Companies Holding Onto Cash
Instead of investing in growth, companies this year have been holding more than $1.4 trillion in cash – close to a record $1.65 trillion in 2014. Oracle’s $56 billion cash stockpile is 1.5 times its sales and Cisco’s $60 billion in cash is 1.2 times its sales. Eleven companies have cash reserves double their annual …
What will happen in M&A in Q1 2016? Dealmakers Weigh In
As we near the end of the fourth quarter, everyone is wondering what will happen in 2016. Will the frenzied M&A activity of 2015 continue into the new year? There seem to be mixed reviews on what activity will look like next year. The Intralinks deal flow predictor indicates a 7% increase in global M&A …
5 Ways to Quickly Lose a Deal
It goes without saying that the introductory meeting is a crucial step of the acquisition process. If it goes well, your partnership could result in a successful deal. If it goes badly, you may be throwing away a great opportunity and have wasted hours of time and resources chasing the deal. Your goal for the …
What Are Buyers Really Looking For in M&A?
What is the best way to position your company to be sold? I’ve often heard this question from owners and executives who aren’t quite ready to exit their business but who may be thinking about its future over the next five to 10 years. If you’re in this position, you’re wise to begin thinking about …
