While every deal is characterized by its own strategic logic, most successful deals have specific, well-articulated value creation concepts from the very beginning—while the strategic rationales of less successful deals can be vague. According to a May 2017 report by McKinsey & Company, the strategic rationale for an acquisition that creates value (providing the buyer did not overpay) typically conforms to at least one of these six scenarios:
This presentation was given at the AutoCare Association’s annual PBES conference in May 2017. It kicked off the first day of the conference and was the introductory portion of a panel discussion entitled “Managing Change in the PBE industry – Grow and Thrive, or Sell?” To receive a recap of the panel contact David Roberts… Read more »
In public markets, the FOCUS Enterprise-Focused Telecom Technology Index (EFTTI) jumped 7.2% in our spring reporting period. This handily outperformed the S&P 500, which gained only 4.6% over the corresponding time frame. However, it slightly trailed the 7.7% gain in the NASDAQ. The picture for the full year looks very similar.
The EFTTI delivered a strong year-over-year gain of 22.6%, which outperformed the S&P 500 but lagged the NASDAQ. Gains for the sector have been broad-based, with every single sub sector in the black for both the three- and 12-month periods. Sub sector multiples also are up significantly compared to last year.
We live in a time of great paradox. Technologies such as low cost renewable energy and automated production tools promise a world of abundance in which global poverty is abolished and human drudgery is eliminated. Yet even a casual glance at the daily news confronts us with a sense of dread that, far from Utopia, we are instead headed toward a dystopian future in which the benefits of technological advance will be reserved for a privileged few.
FOCUS announces the sale of our client, Critical Technologies, Inc. – doing business as AirVault® – to GE Aviation. After a decade providing strategic advice to AirVault, the result is this compelling transaction with one of the world’s most well-known and highly regarded companies.
Following a slow start at the beginning of 2016, the US M&A market demonstrated its resilience. Uncertainty around some high-profile broken deals, the UK’s Brexit vote, and the US Presidential election has washed out of the market and the outlook for 2017 is positive.
These four broad factors are likely to set the tone for M&A activity in 2017. While dealmaking ended 2016 on a high note, to continue, certain key factors need to be in place, according to a new report, “Building Momentum: US M&A,”
According to Bloomberg on March 29, 2017, “A year ago, a Donald Trump presidency didn’t appear all that likely. So it felt almost as if Wall Street’s dealmakers were speaking of an extreme–perhaps even amusing–hypothetical when they picked the ‘Art of the Deal’ author last March as the best candidate for mergers and acquisitions…
The modern era has witnessed two great periods of transformation that radically changed the global economy and the very nature of human existence. The Industrial Revolution of the 18thand 19th centuries and the shift to a postindustrial economy over the past fifty years are old news. Today, the Global Economy is undergoing a third period of… Read more »
M&A activity continues to remain strong within the broad technology sector. 451 Research ranked the following sectors in order of highest amount of acquisition spend within the technology sector in 2015. Enterprise Security Mobile Technology Internet Content/Commerce Enterprise Application Software Enterprise Infrastructure Software Mobile Technology has been drawing the highest amount of spend from acquirers… Read more »
The Communications Service Provider Index (CSPI) dipped into the red for our spring reporting period with a three-month loss of 1.0%. This significantly trailed the 5.5% gain in the S&P 500 and the 9.8% gain in the NASDAQ over the corresponding time period. This period’s underperformance also moves the CSPI behind the broader indices for… Read more »