I’m frequently asked about the “right” price to put in the letter of intent. As you will know, the LOI is an important milestone in the M&A process, because it establishes a “gentleman’s agreement” before the formal deal is settled. You have yet to compete due diligence at this stage, and figuring out the right …
Tag: Mergers and Acquisitions
Acquisitions: Every Company Is For Sale
Why actively pursuing not-for-sale companies can lead to a better acquisition than a for-sale opportunity. When searching for acquisition prospects, most people only consider for-sale acquisitions. Usually these are offered by investment bankers, who carry a “book” of candidate companies. Restricting your search to for-sale opportunities is usually a mistake. I encourage clients to actively …
The Dangers of Getting Swept Away In the Excitement of a Deal
“The danger with a mergers-and-acquisitions boom is that chief executives could allow themselves to get carried away by the thrill of the hunt, reducing their focus on internal investment projects that might have a better chance of bearing fruit,” says the New York Time’s Dealbook column. M&A activity has reached record highs and shows no …
Maximizing Your Resources with Privately Held, Not-for-Sale Acquisitions
Sprint has dropped its bid to acquire T-Mobile due to regulatory pressure. Large, public transactions must be reported and should be regulated by law, of course, but this is an unfortunate setback for Sprint. After investing resources putting together the deal and lobbying for months, the company must walk away from it because of external …
Staying Connected: 4 Ideas for Meeting with Your Acquisition Team
Team meetings are important in order to move forward confidently when it comes to due diligence. Ideally I would want everyone on your team to be physically together, but I understand in today’s environment that may be difficult to schedule, and you’ll have to be creative to maintain team cohesion. Here are a few suggestions …
Valeant Seeks More Acquisitions
Valeant Pharmaceuticals International is determined to grow through acquisitions. Already actively pursuing a deal with Allergan, the maker of Botox, Valeant is reportedly seeking another contact lens company. CEO Michael Pearson said the company “will not be content to remain the No. 4 global player in the contact lens industry.” Valeant has a history of …
The Strategy Behind the AbbVie-Shire Acquisition
Here’s a quick thought about the Abbvie – Shire transaction that’s received so much recent attention because of the decision to reincorporate in Ireland once the deal is completed. Tax inversions are in vogue and a hot topic in the media. While the tax benefits of an inversion certainly are important in this acquisition, that’s …
Zillow, Dollar Tree Announce Acquisitions
It was a busy Monday for Mergers & Acquisitions with two big brands announcing consolidations: Zillow will buy Trulia and Dollar Tree will buy Family Dollar. Activity is getting frothy and as I’ve been saying, the sleeping dragon is starting to wake up. Here’s what you need to know about these transactions: Zillow to acquire …
M&A Update: 1H 2014
M&A activity was on the rise in the first six months of 2014. Global M&A increased 73 percent to $1.77 trillion and Midmarket M&A increased 18 percent to $399.4 billion. Check out our infographic for a snapshot on Global Mergers and Acquisitions in 1H 2014. Click on the image for a closer look. Feature Photo …
How to Manage Unrealistic Expectations of Value
How often do sellers have unrealistic expectations of their company’s value? What’s the best way for a buyer to approach them early in the process and address their concerns? Todd Nelson, Capstone Valuation Advisor, answers: This is a common issue where sellers hold high value expectations for their businesses. While price is not the only …
