Burger King and Tim Hortons announced on Sunday that they would merge into a single enterprise with $22 billion in revenue and 18,000 restaurants worldwide. A new parent company headquartered in Canada would be created in what technically is a tax inversion, although tax savings are not driving the merger itself. The main strategy is […]

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Deferring to advisors during the M&A process can be detrimental to a company, as evidenced by the back and forth over Valeant Pharmaceuticals’ unsolicited $53 billion bid to acquire Allergan, the maker of Botox. The maneuvering over the past several months has become heated and off-track. Or as the Deal Professor column puts it: “Some […]

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“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 […]

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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 […]

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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 […]

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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 […]

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Successfully executing a deal can be tricky, even if you already know the acquisition prospect. In fact, your existing relationship may complicate the deal. Acquiring a company that you’ve worked with can make it difficult to objectively evaluate the opportunity. Bonnie Ciuffo, President of South Carolina Financial Solutions (SCFS), and John Dearing, Capstone Managing Director, […]

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What should I consider when valuing a business for acquisition? There are many aspects to consider including business growth, revenues, profitability and sustainability of cash flows to investors, but there is no one way to establish a business’s worth. Business valuation takes preparation, thought and experience.  Let Capstone guide you through the valuation process for […]

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Two of the largest chicken producers, Pilgrim’s Pride and Tyson Foods, have been fighting over Hillshire Farms. On Monday, Tyson Foods raised its offer to $63 a share in cash, which values Hillshire at $7.7 billion. Last week, Pilgrim’s Pride had raised its bid 22% to $55 a share; however Pilgrim’s Pride has withdrawn its […]

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While G.E. may have Alstom’s support to acquire its energy business, the company has yet to gain the support of the French government. On Wednesday, G.E. chief executive Jeffery Immelt will visit French President François Holland for the second time to discuss G.E.’s $13.5 billion bid for Alstom’s energy business. If G.E. and the French […]

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Facing a stagnant market, retailers of consumer staples have turned to aggressive discounts to drive growth. According to the Wall Street Journal, more than 50% of consumers’ purchases include markdowns! More Discounts is NOT More Growth Businesses in non-growth or declining growth markets understandably must find new ways to capture market share. However, offering more […]

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As tax day approaches in the U.S. I thought it’d be appropriate to discuss a business tax trend. As you may be with your own return, U.S. corporations are looking for more tax advantages.  Many are seeking tax inversions, where they reincorporate in a new country with a lower tax rate as a result of […]

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After battling for six months, Men’s Wearhouse and Jos. A. Bank finally came to an acquisition agreement on March 11 for $1.8 billion, forming the country’s fourth-largest men’s retailer. Men’s Wearhouse expects cost synergies of $100-150 million over the next three years to result from the deal, including the benefit of better purchasing power. While […]

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When Enterprise Rent-A-Car acquired Alamo and National in 2007 it didn’t “swallow up” its new brands during integration. Instead, it made a conscious effort to learn from and integrate best practices from both parties. As Executive Chairman Andrew Taylor explains in the Harvard Business Review, “…In the process we also learned a lot about ourselves […]

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“The best opportunities are the ones we’re pursuing and not the other way around.” This comment in The Wall Street Journal from Smadar Levi, CFO of MyHeritage.com, is one I wholeheartedly agree with. She is quoted in an article about the growing number of startups seeking to be acquired. With fewer financing options available to […]

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When do you let an owner of a privately-held not-for-sale company know you are interested in acquisition? While, I’ve mentioned that an owner will not sell their company over the phone, this doesn’t mean you should hide your interest in acquisition. You should introduce acquisition at the beginning of the process. In your first call […]

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Private equity investors and strategic buyers are enthusiastic about 2014. Of the U.S. executives polled recently by EY Americas Transaction Advisory Services, 41 % said they expect to pursue at least one acquisition in 2014, compared with only 23 % polled at the end of 2012.  Uncertainty in regulation remains one of the biggest challenges […]

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The biggest tech M&A disasters were the Time Warner-AOL $350 billion merger and Google’s $12.3 billion acquisition of Motorola Mobility.  In my observations, the greatest hurdle facing tech mergers is integration. Even where the strategy of the acquisition is solid, if the integration of the two workforces and assets is not executed properly, it will fail.  Even […]

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The New Year offers a fresh start for setting goals and creating a positive tone for the rest of the year. If you strategize well, you will find unique opportunities in the next 12 months to grow your business through M&A. Before rushing off to find companies to acquire, however, make sure you are looking […]

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Many executives engaged in M&A believe in creating a long list of acquisition prospects. However, the goal of your M&A process should be to find the right companies. Obviously, it’s good to fill your pipeline with prospects, but you want to be sure these prospects match your strategic criteria. What good is a long list […]

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