In late 2015, Truck Hero, a designer, manufacturer, supplier and e-commerce retailer of accessories for pickup trucks, had as much momentum as a runaway Mack. The fast-growing sales of its aftermarket products were tapping into America’s pickup-truck boom. Looking forward, the company had ambitious plans for an initial public offering. The IPO was projected to raise about $240 million, placing the Ann Arbor, Mich.-based company on the New York Stock Exchange.
A recent study of private acquisitions between 2012 and 2015 revealed some interesting trends of acquisitions and mergers of middle-market companies.
The global stock-market swoon sent many would-be corporate acquirers and merger targets scurrying to the sidelines in the first part of 2016, as a combination of losses in valuation and overall volatility cool the M&A market at least for a while.
For business owners thinking about selling their company, the current market reflects a significant rebound in economic confidence from the dismal recession years.
The global mergers-and-acquisitions scene has come back in a healthy way, and some might say that the preliminary agreement between Anheuser-Busch InBev and SABMiller is simply the froth on the top of the M&A beer glass. The question on the tips of many CEOs’ tongues, however, is whether these events represent opportunities that won’t last and that they should take advantage of.
Approaching its IPO anniversary, Citizens Financial is forging an independent future.
CEOs like to think of themselves as rational beings that apply thorough analysis to get optimal outcomes. Of course, this is not always the case. We’re humans, not optimizing machines.
While JP Morgan recently predicted that a strong 2014 would lead into a fresh round of M&A activity in 2015, it also noted last year’s level of failed transactions was the highest since 2008.v
Deal guru Irwin Simon, founder and CEO of Hain Celestial, knows how to make mergers work.
A growing body of research has shown that 50% to 90% of acquisitions fail to pay off for acquirers. This means that traditional integration methods are not working. There are many reasons an acquisition might fail, but two recurring mistakes are the order and the depth at which the integration is tackled.