The predilections of America's youth are swaying companies' selection of corporate acquisition targets.
Following a competitive bidding war earlier this year, Alaska-Virgin America secured its spot alongside Delta, United and American Airlines within the pantheon of the top-five largest U.S. carriers. Pair this with a trio of healthcare deals worth a combined $45 billion—involving big names like Abbott Laboratories, AbbVie and Sanofi—and Microsoft’s recent acquisition of LinkedIn for $26.6 billion, it’s clear that the M&A boom has been reignited.
Imagine the president of your largest business unit slips into your office at the end of the day. As you know, margins are down and she’s sweating blood for every iota of market share. Now she has a proposal for a bold move that could take the company to the next level.
Managing cash holdings used to be a relatively simple matter of plonking money in the bank and watching it earn a modest return. Now, the whole world of liquidity management is seemingly turning upside down, forcing CEOs and their treasurers to consider different investment strategies to avoid being punished for saving.
Nothing ails the U.S. economy that a strong and sustained dose of new business investment wouldn’t solve, many economists say. But some feel that what's holding investments back is that CEOs aren’t being confident enough to make investments right now.
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.