On our blog we often talk about the strategic rationale of acquisitions and the mechanics of planning and executing M&A. But after an acquisition is completed, how does M&A affect your company and what is it like to run a newly merged entity? As a third party M&A consultant I have learned best practices from […]

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At first glance you may ask, “Why in the world would Warren Buffett buy Duracell?” One explanation is financial. Through a bit of fiscal engineering Berkshire Hathaway is able to avoid triggering significant taxes. The Duracell transaction, is essentially a merger through a stock swap. Berkshire will give P&G $4.7 billion of the shares it […]

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Entrepreneurs rarely face the challenge of having too few ideas. In fact, like most entrepreneurs and business leaders you probably have a multitude of great ideas for growing your own business. Your biggest challenge may be figuring out which of all the alternatives is the best way to get from where you are now to […]

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Capstone’s State of Midmarket M&A Q1-Q3 2014 Update indicates a steady growth in midmarket mergers and acquisitions. We surveyed midmarket executives from multiple industries to learn how the first nine months of 2014 matched expectations from 2013, and to indicate any new trends in midmarket M&A. The survey was conducted in October 2014, and follows a […]

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Capstone CEO David Braun will present “Strategic Alliances, Joint Ventures and M&A – the Route to Success?” at the 2014 European Base Oil & Lubricants Summit in Alicante, Spain on September 18. The two-day conference brings together leading executives and experts in the lubricant and base oil industry from established Western Europe and U.S. markets […]

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A collaborative mindset often leads to the best long-term outcome when you’re looking to buy another company. Buying a company is not like buying a used car where you walk away and never see the dealer again. It can be more like buying an automobile with the seller thrown in. Imagine yourself at a dealership […]

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I’m frequently asked about the “right” price to put in the letter of intent. As you will know, the LOI is an important milestone in the M&A process, because it establishes a “gentleman’s agreement” before the formal deal is settled.  You have yet to compete due diligence at this stage, and figuring out the right […]

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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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Choosing the best option for growth. More often than not we find our clients have too many choices rather than too few. The difficulty lies in prioritizing options and determining which one is the best path forward. You may find yourself in a similar situation. With so many options how can you choose? Although it […]

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You can increase your chances for successful acquisition by using functional due diligence to evaluate a prospect. This means actively involving leaders of the key functions of your organization: functional leaders from sales and marketing, finance, operations, IT, etc. There are several benefits to involving functional leaders in the due diligence process.  Each leader has […]

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The polyolefins industry, like so many others, is evolving significantly. Growth in emerging markets and Asia has skyrocketed while European and North American markets have matured. Last week I was invited to speak at the Future of Polyolefins Conference 2014 in Dusseldorf, Germany, where top executives from key industry players such as Borealis AG and […]

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M&A activity is at the highest level it’s been since before the recession in 2007. We’ve been talking about an uptick in deal activity since last year and now we’re finally seeing real traction. So far in 2014, there have been $1.7 trillion in deals. In Q1 2014, US deal value was up 56% and […]

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Pharmaceutical companies are using acquisition to become “pointy,” or more focused. Two recent examples are Bayer and Merck.  Bayer is focusing on over the counter medications by acquiring Merck’s consumer care business for $14.2 billion. On the other hand, Merck has become more streamlined through divestment. As I’ve mentioned before, although divestment means becoming smaller, […]

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How important is BlackBerry’s newest smartphone, the Q20, to the future of the company? Recently I had the opportunity to speak with CNNMoney about this. With Q20, which will be released in the second half of 2014, BlackBerry is returning to its core customers by offering them what they want: a hard keyboard, buttons, and […]

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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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This is the third part in a series addressing current and expected viewpoints on M&A from across a number of professionally relevant sources. Read parts one and two of our Midmarket M&A Analysis.  Industries that showed strong growth in early-stage activity in Q3 2013 included the consumer, life sciences, and telecommunications, media and entertainment (TME) sectors.  Additionally […]

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This is the second part in a series addressing current and expected viewpoints on M&A from across a number of professionally relevant sources. For part one, read Midmarket M&A Analysis: 2013 to 2014. 2013 saw a number of announced large-cap deals aimed at consolidating market positions and facilitating growth into new regions. Most notable has been Verizon […]

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Following the credit crisis of the last few years and the resulting substantial decline in M&A activity, the subject of a revival in M&A activity has been much anticipated and discussed by industry participants and observers. This week, we will release a series of blog posts providing a synthesis of M&A sentiment and opinion, incorporating […]

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