David Braun
Author's posts
Facebook Says No Waze
Yesterday, we learned that Facebook’s bid for Israeli startup Waze has ended. According to reports, negotiations broke down over disagreements on moving the Waze team from Israel to Facebook’s headquarters in Menlo Park, California. Facebook was rumored to be in talks to buy Waze for $1 billion. This is a great example of why it’s …
Why You Don’t Want a List of Companies
I was on a call with a prospective client when he asked a question I frequently hear: “Will we get a list of companies we can look at to acquire?” It’s a common misconception that your objective in hiring an M&A consultant is a long list of for-sale acquisition prospects. I strongly caution against this …
Will Yahoo Take A Tumble?
Yesterday Yahoo announced its plans to buy Tumblr for $1.1 billion in cash, which has really grabbed people’s attention. Marissa Mayer has made about 10 acquisitions since becoming CEO in July 2012, as part of her overall plan to make Yahoo part of our everyday routines. This is her biggest investment yet. Did Yahoo Overpay …
Why American Greetings is Going Private
At the beginning of April, American Greetings announced it was going private after being publicly traded since 1958. American Greetings has seen increased competition from both traditional competitors, like Hallmark, and from new competition, like social media. Here are the top three strategic advantages I see for American Greetings going private. 1) Shed Costs Going private the …
A Sweet Deal: Pearson Candy Co. Buys Nestle’s Bit-O-Honey Brand
On May 1, Pearson Candy Co., a regional candy manufacturer headquartered in St. Paul, bought one of Nestle’s smaller brands, Bit-O-Honey. The company plans to manufacture Bit-O-Honey at its existing plant in St. Paul along with regional favorites like the Salted Nut Roll. When people think of acquisition, they often think of highly publicized megadeals …
Lending Club: Why Google Is Settling for Minority Ownership
Last week Google acquired a minority stake in consumer loan company Lending Club. The exact amount Google invested was not disclosed, but it was part of a $125 million round of financing for the Lending Club. Lending Club is an online company that uses technology to match borrowers with lenders. Since its inception in 2007, …
Five Common Mistakes Made During an Acquisition (And How You Can Avoid Them)
About 77% of company acquisitions fail. Don’t let that number scare you off from an acquisition. Based on my observations as an M&A consultant, I’ve found most acquisitions fail due to widespread misunderstandings of the process. Head over to the ACG National Capital Blog to read my list of some of the most common mistakes …
Apple Borrows Cash
Yesterday, Apple sold $17 billion in debt offering to investors, the largest corporate-bond deal in history. Apple’s first debt-offering in over 20 years is part of its plan to return $100 billion to shareholders by the end of 2015. This plan is a response to pressure put on Apple to use their excess cash hoard …
Committing to Research: Primary vs. Secondary Research
Research is essential to the success of any business plan, including acquisition. The demand-driven, “markets first” acquisition process that I advocate requires thorough research. Only thorough research uncovers the most appropriate markets, helps you identify the best prospects, and sets you apart from other potential buyers. There are two levels of research to consider: primary …
Acquisition: A Team Sport
Throughout my blog I’ve stressed the importance of carefully planning your business strategy. While planning is important, your plan to buy, no matter how well crafted, is only as good as the people who execute it. Acquisition is a team sport for two reasons. Practically speaking, buying a company involves multiple skills—more than any single …
