Alibaba, China’s internet giant, will purchase a 10% stake of Mail.Ru, one of Russia’s largest internet companies, to expand its ecommerce reach in Russia. As part of the deal, Alibaba, Mail.Ru, telecom company MegaFon, and Russia’s sovereign wealth fund, will form a joint venture called AliExpress Russia. Alibaba will have a 48% stake in the …
Tag: minority investment
How to Buy a Company When the Owner is Not Willing to Sell Today
Despite your best efforts to convince an owner to sell, sometimes you will find that an owner of a not-for-sale company is just not ready to let go – even if he or she thinks partnering with your company is the right decision. In some cases, you will have to part ways and move on …
Mars Makes Minority Investment in Healthy Snack Maker Kind
Sugar is not so sweet anymore. Blamed for making people sick and causing obesity, consumers are turning to healthier options and governments are trying to curb sugar consumption. Faced with these market dynamics, Mars recently announced it has made a minority investment in Kind Snacks. Kind’s products are made without artificial ingredients and include bars, …
5 Paths for Helping Your Credit Union Grow
In the last three to four years, credit unions have taken a heightened interest in growing noninterest income due to a combination of factors. As interest income dwindles, credit unions need to offset additional expenses such as compliance. Over the past decade, we’ve seen a massive influx of noncredit union centric people coming into the …
Dr. Pepper Snapple Adds Healthy Option with Bai Brands Acquisition
The demand for “healthy” or “better for you” food and beverages continues as consumers become more health conscious. Following this trend, Dr. Pepper Snapple (DPS) has agreed to acquire Bai brands, the maker of antioxidant and other “all natural” drinks for $1.7 billion. Founded in 2009, Bai has about $300 million in revenue and 373 …
5 Ways Minority Interest Helps You Grow
Private equity firms are increasingly acquiring minority interests in public companies in order to grow, according to the Wall Street Journal. The landscape for PE is changing. Firms are facing tough competition from strategic acquirers who have cash on their balance sheets and are typically willing to spend more on an acquisition. At the same …
What is a Minority Investment?
Minority investments are a creative way to think about transactions, one that is often overlooked. When we create a transaction with a company, there is a spectrum of possible involvements—everything from an informal strategic alliance to a 100% acquisition. A minority investment is somewhere in between these extremes. Typically consisting of a quarter to a third …
Keys to Successful Minority Investment
On yesterday’s M&A Express videocast, The Hidden Power of Minority Ownership, I mentioned Marcus Lemonis, a businessman who turns around struggling businesses in the CNBC show, the Profit. I’ve written about Lemonis before on the blog, and how he really prefers to use minority ownership so that the founders or original owners of the business continue to …
Why You Don’t Need a 51% Stake to Control a Business
“I always take control, but I did not buy 51 percent. Control doesn’t have to be 51 percent. I think people get confused by that.” Marcus Lemonis comments about minority investment on Squawkbox are spot-on. When asked to elaborate, he explained, “I just document everything: full financial control, full operational control. I can have 10 …
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 …
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