M&A Blog and News
Let me first set the typical context (understanding that in an M&A, very little is typical) for this in-house training program, which often is a 2-day session with the designated functional leaders of both companies:
Mergermarket and Merrill DataSite have just released their “Dealmaking in Brazil and Mexico” report. In it, you’ll learn that rebounding economic growth and government initiatives permitting better capital flow and competition have made Latin America common ground for M&A dealmaking.
Please take a look at the full report HERE.
Since the BHP-Billiton proposal to acquire Potash Corporation was turned down by the Canadian Government in 2010, there has been an air of uncertainty regarding Canadian foreign takeover policy. On the one hand, the government of Canada has continued to indicate that foreign investment is welcomed, but on the other hand, no explanation was provided for the Potash Corporation decision and so buyers have been left guessing about unwritten takeover restrictions.
Of course we all aspire to grow the revenues of our business, reduce costs, create customer loyalty and many other avenues to contribute value to our stakeholders. In order to do so, we secure the best vendors, employees and leaders who are educated, trained and experienced to create in-house competencies. So why is it that so many companies, even today, continue to see growth by M&A in a passive light? Why is it that so many company executives are given the arduous task of growing the business through acquisitions without a similar investment in people, tra
Open a newspaper today and you are bound to read about the next wave of emerging or high-growth markets. Whether it be a headline on Turkey becoming the third fastest growing country in the world by 2017, the passing of a new foreign investment law in Myanmar, or a new acronym touting a group of countries as the next BRICS, there is no doubt the global M&A market is changing. Shifting patterns in outbound M&A signal a greater proportion of deals involving high growth markets in the years ahead.
(This article appeared in Financier Worldwide and has been edited to comply with their editorial guidelines, which include UK spelling and grammar, and specific house styles for consistency.)
To be successful in acquisitions and integrations, we strongly recommend that organisations focus on some key numbers.
The first number to focus on is ‘70’, as in the Rule of 70/70.
"Real Life" Success Stories, Best Practices & Case Studies
CEOs and their boards have always had a primary responsibility to compete for shareholder investment in the market. In order to do so, they must focus on driving up the intrinsic value (discounted cash flows) of the company to create demand for the stock. In simple terms, Intrinsic value is created from both ROIC (returns on invested capital) and Revenue Growth. Empirical evidence from both the stock market and cash flow analysis show that ROIC combined with Revenue Growth drive the intrinsic value and in turn the stock price. Stock prices, like all prices, are driven by demand. The hi