2015 FactSet statistics show that large M&A transactions had higher value multiples than small deals—and the premium is about 30 percent. Median EV/EBITDA multiples for deals exceeding $250 million approximated 12.4x, while the ratio for middle-market transactions was 9.5x. This phenomenon of higher multiples for larger deals has been persistent over time. Deal Size—EV/EBITDA Ratio… Read more »
A whirlwind of wheeling and dealing continues to drive mergers and acquisitions through the third quarter. According to Thomson Reuters, this is the best year for M&A since before the financial crisis. Global M&A activity has risen 38% year-over-year to $2.18 trillion through the first half of 2015.
InvestorPlace reports that “The third quarter was awash in big deals…A great chunk of that deal activity came from U.S. companies, as mergers and acquisitions rose 60% to $987.7 billion. For banking and legal advisers, business hasn’t been this brisk in the first half of a year since 1980…make no mistake — the market loves M&A. A flurry of deal activity signals that companies have confidence in the economy and stock market.”
When it comes time to sell the company you’ve worked hard to build, it’s crucial to understand the selling process—especially the types of buyers you might be meeting. Potential buyers fall into two main categories: financial and strategic. Financial buyers acquire a company primarily for financial return. They place a large emphasis on characteristics including… Read more »
But don’t take our word for it: “Companies are merging at a pace unseen in nearly a decade. Halfway through the year, about $2.15 trillion in M&A deals or offers have been announced globally, according to Dealogic. That puts 2015 on pace to challenge the biggest year on record, 2007, when companies inked deals worth… Read more »
In today’s deal climate, we are likely to see more divestitures as buyers and sellers look for more creative ways to be strategic in their growth, according to a recent Deal Value report from Bank of America Merrill Lynch (BAML). Companies are optimizing for growth and streamlining their portfolios with divestitures of noncore assets and… Read more »
Specialty Chemicals represent a $730 billion industry. Within this landscape, there exists a common source of raw materials known as chemical intermediates. Intermediates are the key “building-block” substances synthesized to deliver desired functional performance to formulated products such as plastics, cosmetics, home care products, agricultural chemicals, coatings, adhesives, inks, pharmaceuticals, etc.
More than 20 years after the rise of the Internet and the advent of the modern telecommunications industry, telecommunications continues to be an extremely dynamic industry. With so many of the industry headlines centering around behemoth service providers such as AT&T and Verizon or tech giants like Ericsson or Google, it might appear the massive amount of industry consolidation has left little room for middle market telecommunication companies or their investors.
The volume of transactions concluded by the Big Four consolidators in 2014 far exceeded any expectations we might have had even as late as NACE in July. Only the consolidators themselves knew the extent of their acquisition possibilities when the year started. When the dust settled, the total number of acquired and new shops for the Big 4 exceeded 374 – on a beginning base of 614 shops. Fifty percent growth in a single year!
In a 2015 M&A Outlook Survey, KPMG and Mergers & Acquisitions magazine surveyed over 735 M&A professionals from U.S. corporations, investment banks, and private equity (PE) firms. The Survey reports that, “Despite global concerns, U.S. deal makers are encouraged by low interest rates, record stock prices, improving employment numbers, and an abundance of cash.” Better… Read more »
In today’s hyper-competitive environment, companies must combine complementary expertise to fill individual gaps in products and services, says PwC Chairman Bob Moritz.
In his State of the Union address, President Obama was brief but to the point on healthcare. Declaring that about “10 million uninsured Americans finally gained the security of health coverage” because of the Affordable Care Act, he made clear he would veto any legislative attempt to roll it back.