Most companies are seeking growth outside of their core business through organic means or mergers and acquisitions, according to a new survey by McKinsey. What’s interesting is that although many companies want to expand beyond their mainstay business, most do not have the capabilities to do so. Here are three best practice steps noted for successfully …
Tag: mergers
M&A Update: 1H 2015 Was the Most Active Half Year Since 2007
Global dealmaking remains robust, reaching $2.2 trillion in the first half of 2015, according to Thomson Reuters data. This is an increase of nearly 40% from the first half of 2014 and the most active half since 2007. However, the number of deals only increased slightly, by 3%. The trend of fewer, larger transactions continues: …
Why ConAgra Plans to Sell Ralcorp Less than 3 Years Later
Packaged food company ConAgra Foods plans to divest its private label branch Ralcorp after acquiring it in 2012 for $5 billion. Why is ConAgra spinning off this private label business so quickly after acquisition? The many reasons include pressure from activist investors, poor performance, increased competition, and tighter margins. Ralcorp’s revenues dropped by 6 percent …
Aggressive Lending, Bigger Deals… M&A is Back on the Move
There’s no denying it that M&A is on fire. Look at any financial newspaper headlines and you’ll see announced deals or merger talks. And keep in mind for all the major transactions involving publicly held companies there are many smaller, privately held transactions occurring unannounced. We can better understand this current wave of activity and …
When Organic Growth Stalls, Consider M&A
Robust mergers and acquisitions activity is often an indicator of economic growth, but the recent flurry of deals do not reflect a confidence in the economy, Andrew Ross Sorkin writes in Dealbook. Revenue growth of US companies has declined from 11.2% in 2010 to 5% to 2020, a Citigroup report indicates. “Strategic actions such as M&A…have become a key …
David Braun Speaks on Using M&A to Drive Growth in Biofuels Despite Uncertainty
David Braun presented on mergers and acquisitions at Oleofuels 2015 in Frankfurt, Germany. As overall energy demand increases, biofuels continue to play an important role in environmental sustainability. Global biofuel production reached 115 billion liters in 2013 and is expected to grow to 139 billion by 2020. Despite this increase, the dynamics of the industry …
The Role of Corporate Secretaries in Mergers & Acquisitions
Capstone Managing Director John Dearing spoke at the Society of Corporate Secretaries Governance Professionals‘ Middle Atlantic Chapter Spring Conference on May 28. He participated in the Corporate Secretary’s Roundtable and shared advice for corporate secretaries during M&A. Corporate secretaries play an important role which often extends beyond administrative duties to implementing decisions of the board …
Aligning Buyer and Seller Functional Leaders in Due Diligence
Q: “What if the buyer and seller functional leaders do not match? How do you coordinate the two sides?” We take a functional approach to due diligence where we encourage your leaders from sales, marketing, finance, operations and other functional areas to meet with their respective leaders on the seller’s side. A functional approach ensures …
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, …
