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:
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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,”
The Economy Resuscitates, Stocks Gain, Rates Rise, Inflation Grows — Heightened Volatility and Potential for Big Market Swings Likely
In 2017, there is cautious optimism for accelerating U.S. and global economic growth, improving corporate fundamentals, modest stock gains, and higher yields on expectations of fiscal stimulus and regulatory policy easing.
Full-on optimism is tempered by the rippling effects of rising inflation, a stronger dollar, weak credit markets, uncertain commodity pricing, and game-changing political events that raise the potential for big market swings.
Looking back, it was a very good year. In 2016, 14 closed deals demonstrate the solid expertise of FOCUS both in the spectrum of sectors engaged as well as in the variety of strategic services successfully deployed. In 2017, we anticipate a climate rich in M&A deal-making opportunities. According to Mergers & Acquisitions, “For companies… Read more »
Based on an interview of George M. Shea, Partner and IT Team Leader, and Manan K. Shah, Managing Partner, FOCUS Investment Banking LLC You’ve scaled and done all the hard work. Should you prepare your startup for exit? How do you know if your business is ready for a sale or acquisition? As a CEO,… Read more »
Selling a business comes with a lot of uncertainties. While a would-be seller can’t always control which parties are interested in buying, the seller does control the way the business is managed and scaled leading up to the sale—and the way they use their leverage in negotiations. FOCUS Partners George Shea and Manan Shah discuss the current selling climate, typical exit process, and the importance of a strong management team.
Worldwide, the art of dealmaking is evolving. There are substantial modifications in the way deals are being done today. Every detail from due diligence and integration to strategic planning and channels of communication is being refined and improved.
Careful coordination is ever more critical. Risk management tools are being reshaped and perfected—plus, there’s a razor-sharp focus on ensuring the acquirer is achieving maximum value.
A variety of new research reports conclude the fundamentals for healthy dealmaking remain firmly in place, and most believe the worst of the year is over. In fact, it appears U.S. M&A is normalizing and positive results for Q4 may be expected.
Although the numbers for the first half of 2016 were the lowest since 2013, they actually are higher than any first half from 2008 through 2013. Why? Perhaps this is a signal the M&A boom of recent years remains alive and well, if a bit diminished.
Q: In 2015, we heard a lot about how favorable the market was for acquisitions. What’s happening with deals in investment banking now?
WILFONG: Indeed, 2015 was a very robust year for deals in the lower middle-market space which FOCUS defines as companies that do up to 250 million in revenue. This activity was driven by a couple of factors…