M&A Blog and News
Finding the Hidden Expenses in Lease Accounting and Internal Capital Projects
By Robin Reinhard Samples, CPA, and Marc S. Shaffer, CPA
Investors take many factors into account when purchasing a business, but most considerations can be boiled down to one question: What is the future earnings potential of the company?
Download the full paper from Crowe Horwath on Quality of Earnings Analysis
by Jack Prouty
President of the M&A Leadership Council
One of our workshop Alumni suggested we feature a series on building in-house competencies in our monthly newsletter. In each issue we’ll emphasize one of our key workshop points as a focus for best practices or capabilities.
Understanding the concept of Deal-type DNA (introduced in my last blog, Aug 19, 2013) as a means to avoid epic integration failure is really just part of the equation. Another mission-critical aspect is based on the role of the buyer (see my blog, Aug 5, 2013). Before we can establish the integration strategy framework, we have to determine how we will create value from the acquired business. Taken together, Deal-type DNA and the buyer's
"Real Life" Success Stories, Best Practices & Case Studies
US Biotech deals this year nearly double the value seen in the whole of 2012: US$ 26.4bn-worth of deals have increased 193.3% from US$ 9bn in 2012.
Onyx Pharmaceuticals acquired by Amgen for US$ 9bn
• It is the fifth largest US-biotech deal on Mergermarket record (since 2001)
• It is the eleventh largest deal for the US this year.
There is no doubt that the pursuit of certainty in M&A is on the rise. With the advent of new rules and regulations pressing boards and corporate leadership, M&A deals are not only better scrutinized from the outside, but are being more deeply assessed from the inside. In a recent article in WSJ CFO Journal, it was announced that only “2.1% of deals have been scuttled as of July 31 of this year.”
On paper at least, maximizing financial proceeds to the selling company's owners and shareholders— a commonsense criteria for determining the seller’s degree of M&A success and effectiveness--is straightforward.
Having multiple cycles through acquisitions should no doubt improve the future outcomes for your internal M&A teams. The more transaction cycles through negotiations, due diligence and integration you do, the more you will improve the recipe over time. Right? That is, of course, if the same people go through the same cycles and document the same experiences and subsequent best practices for future deals. History has proven that even highly acquisitive companies cannot be certain that the next acquisition will go better than the last or deliver the future promises made to st