Chief Executive speaks with CEO Stan Bergman to drill down on a dental supply company’s transformation strategy.
The time seems ripe for mergers and acquisitions (M&A) activity in the middle market.
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
At a time when corporate balance sheets are rock solid, interest rates remain enticingly low and the deal environment is booming, perhaps it’s not surprising to learn that some of the most ready buyers of private companies are in fact, private companies themselves.
As CEOs reassess their portfolios due to heightened competition, divestitures are playing a more important role in corporate strategy. In particular, there was an exceptional increase in high-profile announcements in the U.S. technology sector in 2014. The total value of first-half 2014 transactions jumped 62% over the value of transactions in the first six months of 2013. Mega-deals accounted for more than 35% of total first-half 2014 deal value, including five deals worth more than $43 billion each—a level of activity not witnessed since before the financial crisis.
From automakers to apparel brands to CPG giants, more and more big companies are courting startup companies in the hopes of getting the inside track on a new innovation in their field or simply a fast pipeline to new ideas in digital technology.
Over the past decade, owners who have sold teams saw their val- ues increase by between 7 and 11 percent annually, depending on the league, according to Scott Milleisen, head of JPMorgan Chase’s Private Bank Sports Finance Unit. Much of the growth resulted from richer media-rights agreements in recent years, he adds.
Some CEOs buy a team to fulfill a life-long fantasy. Others do it to run a different kind of business. Some want to bring a team to their city and others to keep one from moving away. Meet some of the business chiefs who have become team owners.
Despite the mountain of data that shows that cultural missteps often derail mergers many leaders seem more intent on getting a deal done versus getting it done right. Here are three proven steps that help CEOs secure a better outcome.
How does one define M&A success? Chief Executive reached out to two respected corporate performance consultancies—EVA Dimensions and Applied Finance Group—and put the question to them.