The M&A Takeover tactics Although there are many facets to M&A and the industry is constantly evolving, it is important to understand the possible steps an acquirer would take in order to pursue a target business. The early stages are considered friendly, and the latter hostile. Donald DePamphilis, Mergers, Acquisitions, and Other Restructuring Activities. Available…
Tag: M&A
Journal Report 11: The Best Acquisitions of All Time
Methodology The list is ranked by the estimate of the absolute dollar return to the acquirer. Acquisitions must be at least a majority stake in the target company. Revenue multiples are used to estimate the current value of the acquired company, equal its current estimated revenue x the market cap-to-revenue multiple of the parent company’s…
Ep 84: Visa’s $5.3 billion surprise acquisition of Plaid
What’s going on here? Visa is buying fintech Plaid for $5.3 billion and expects the deal to close in the next three to six months (Mar-Jun, 2020). Plaid offers technology that allows consumers to link their bank accounts to its 2,600 fintech clients (including Venmo) and 11,000 financial institutions – making it one of several players…
Ep 68: Channel-Chopping
What’s Going On Here? Telecoms companies often boost their earnings by merging with one another – growing in size while cutting costs. But Sunrise’s $6 billion plan to buy rival Liberty Global’s Swiss cable network was cut short. What Does This Mean? Sunrise announced the Liberty deal back in February. To cover the costs, it would’ve had to reorganize its…
Ep 59: Why CEOs Surround M&A Announcements with Unrelated Good News
What is this about? Mergers and acquisitions (M&A) are among the most consequential strategic decisions managers make. But markets often respond negatively to acquisition announcements, which means investors are skeptical about the transactions, their terms, or managerial motivations. Prior research suggests such skepticism may be well-founded: In quarters following acquisitions, CEOs in the U.S. are…
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