Companies are looking to buy like never before.
Between record amounts of ‘dry powder’ in private equity, capital relatively easy to come by thanks to more quantitative easing, and (for now) near zero interest rates, acquisitions are firmly on the corporate agenda.
If one comes knocking on your company’s door, whether or not you had considered a sale before, it pays to be prepared for a sale.
A sale of a company may be the best way of all to maximize shareholder value. …
Companies that achieve the best sales valuations are almost always the ones that prepare properly.
Preparing for a sale can enhance the value of a company even if it does not end up being acquired.
The following steps will be common to all business owners, regardless of their size or industry, considering a sale of their company in the near future. Do not wait for a buyer to appear on the horizon to begin implementing them.
Mergers and acquisitions can be an excellent way of adding to the human capital of a business.
When Goldman Sachs acquired J. Aron & Co., a small trading company, in the early 1980s, one of the traders they took on ended up being the company’s CEO. This isn’t uncommon.
Other examples include the Walt Disney Company hiring future CEO Bob Iger in the acquisition of ABC, and even JP Morgan bringing future CEO Jamie Dimon on board after acquiring Bank One in 2000.
These examples — and their success — underline the value of conducting HR due diligence in M&A.
Tax is arguably the least discussed of all motives for conducting mergers and acquisitions.
Managers undertaking M&A tend to be less keen to espouse the tax benefits of a deal — probably wishing to avoid accusations of tax avoidance — than they are to talk up how it gives them a platform for future growth.
Tax is not a dirty word, however. Whenever you’re involved in M&A, it makes absolute good business sense to understand the implications for your company’s tax obligations that a transaction will have.
In this article, we at DealRoom look at how to conduct tax due…
Operational due diligence may be the most forward-looking kind of due diligence that exists.
The aim here is not to look over several years of past performance, but rather to project into the future and assess how value creation will be sustained into the future with the target company’s operations.
In this article, we look at how to conduct operational due diligence, as well as providing a checklist of the items that require attention to ensure…
Every now and then, an investment banker should take time out to read some of the fantastic literature that exists on the field.
A frustration when looking for good books on investment banking is how many people consider books on trading to be investment banking.
And although there are some great books out there on trading, it’s all a long way from investment banking. With this in mind, we have put together the following list:
Investment banking roles are among the most sought after of any careers in the wider field of finance.
The large investment banks have an ongoing cachet that most companies can only aspire to — endowing on their employees an alluring mixture of intellectual prowess and prestige.
But investment banking isn’t just restricted to Wall Street alone. There are now thousands of investment banks of various sizes and niches operating across the United States.
DealRoom deals with dozens of investment banks every year giving it some insight into this industry.
In this article, we look at some of the specifics of…
Following influencers on LinkedIn can be a fantastic way of gaining insights into the world of M&A and finding out what matters from the people at the top end of the market.
We’ve put together a list of 10 M&A influencers that we believe you can benefit from following.
Their rank includes heads of investment banks, a Stern Business School professor of finance, and a few journalists. Follow them all and gain from their wisdom every time you log on.
Leveraged buyouts are often a better idea in theory than in practice: It’s all very well to saddle a company with debt to take it over, the problem is that it also has to operate with that debt on its balance sheet in the years that follow.
Dozens of deals are a testament to the fact that this fine balance isn’t always easy to achieve.
Below, we look at some of the most well-known LBOs in history and find that there are as many successes as failures to report since the first LBO over half a century ago.
Approaching a target company can be a delicate act.
As a general rule, the closer the competition that the target represents to your own company, the more delicate the approach should be.
For this reason, many business owners chose to use an intermediary such as an attorney or an investment banker as a proxy. However, this risks coming off as impersonal at a time when you should be building affinity.
A well-written letter, on the other hand, is likely to achieve everything that an approach by an intermediary will, while also carrying a personal touch that many owners will warm…