Articles

2015 M&A May Pass Records Set in 2000

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.”

Strategic or Financial: Which Buyer Pays More?

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 »

Are You Looking to Exit? The M&A Market is Ready for You.

The M&A market for 2015 is looking bright – kicking off with a stellar start. According to Thomson Reuters, Q1 2015 saw over $854 billion in activity – the strongest quarter since 2007. Mid-market (deal valuation up to $500 million) deal volume was at $188.4 billion, with a year over year increase of 6.2 percent. From all indications, M&A will continue to be a leading growth strategy for companies, with rich exit multiples.

The Darling of Investment Opportunities—Specialty Chemicals Intermediates

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.

Is the M&A Bubble About to Pop?

The answer may surprise you, but first a bit of background. There have been signs of financial bubbles throughout global markets: US price/earnings multiples are relatively high, the Chinese equity market is on a tear notwithstanding signs of an economic slowdown, M&A valuations remain near record levels and so on. But, that’s not the whole story…. Read more »

Playing the Trends in Middle Market Telecom

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.

Private Equity Backed Collision Repair Transactions in 2014

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!

M&A: A Leading Growth Strategy in 2015

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 »