Mergers & Acquisitions: The Dealmaker's Journal articles from April 2003

Mergers & Acquisitions: The Dealmaker's Journal archives from April 2003

Caution Counts in a Chastened M&A Market: As the deal flow starts to pick up, firms will begin feeling the full impact of the realities of the new m&a environment.(U.S. merger and acquisition market)
April 1, 2003... At about this time last year the m&a market was digesting the Enron mess and a number of lesser accounting and corporate governance scandals that collectively raised questions about the veracity of financial reporting and internal controls....

Illegal Tying of Loans to Investment Banking: The Next Big Scandal?(National Association of Securities Dealers' notice for investment investigations)
April 1, 2003... Some dealmakers who have watched the progression of various types of scandals over the past year think that the next regulatory shoe to drop will be investigations into "tying," or illegally linking loans to investment banking work. ...

Sarbanes Jitters Force Buyers To Intensify Due Diligence: Wary of Regulatory Backlash, Acquirers Dig Deeper Into Target Numbers and Controls.(U.S. acquisitions and mergers market)
April 1, 2003... Buyers have raised the negotiating stakes in direct response to the nation's newly stiffened corporate governance rules. Aggravating traditional worries about whether a transaction will pan out strategically and financially are fears that the...

Superior Propane Jumps Legal Hurdle.(Superior Propane Inc.'s legal case)
April 1, 2003... It took four years and $15 million in private sector legal costs but Canada's marquee antitrust case, involving Superior Propane Inc., was most likely concluded in late January. "The case has huge implications in Canada for m&a," says...

The Pill Comes Between Old Friends.(Creo Inc., Printcafe Software Inc., buy by Electronics for Imaging)
April 1, 2003... Takeover defense engineering etched a new level of complexity in a strange but short-lived battle that pitted two onetime friends against each other. It involved creation of a poison pill that clearly seemed stacked against an unfavored...

Mid-Market LBO Firms Slate Increases In Acquisitions and Portfolio Sales.(leveraged buyout firms)
April 1, 2003... While most players in the mergers and acquisitions market remain on the sidelines, LBO firms specializing in mid-sized transactions are targeting an aggressive acceleration of dealmaking - on both the buy and sell sides. Plans to step up...

J&J's Acquisition of Scios Emphasizes Large Pharma's Need for New Products.(Johnson and Johnson)
April 1, 2003... Johnson & Johnson's recent $2.4 billion acquisition of Scios Inc. is the latest in a string of pharmaceutical/biotechnology deals driven by the need of major pharmaceutical players to replenish their drug pipelines. Scios provides treatments...

Banks Cut Ties With Brokerage And Investment Banking Operations.(Wachovia Corp. and Prudential Financial Inc. combine brokerage businesses)
April 1, 2003... Two recent deals in the financial services industry signal a realignment of the battered retail brokerage sector and provide fresh evidence that financial supermarkets are not for all players. Wachovia Corp. agreed with Prudential...

Riverstone Recruits Power Banker.(Riverstone Holdings names Michael Hoffman managing director)
April 1, 2003... Michael Hoffman, a 14-year veteran of investment firm Blackstone Group, has become a managing director at Carlyle Group affiliate Riverstone Holdings, a private equity firm focused on the energy and power industry founded by Jim Derryberry,...

Stock Market Woes Reduce Carve-Outs and Spin-Offs.(U.S. stock market)
April 1, 2003... Deal advisers recall that in the last m&a slump, which ran roughly from 1991 into early 1993, many companies used the acquisition lull to execute restructurings. That hasn't happened this time around. Divestitures have been under wraps...

New Wrinkles in Accounting for Customer Relationships: Accounting rules regarding these intangible assets often clash with business reality.(advice on buying companies and accounting practices)
April 1, 2003... When buying a company, acquirers spend a significant amount of time on due diligence, valuation, financing, and planning for integration. Yet, despite a substantial discrepancy between how acquirers evaluate acquisition targets and how the...

Trouble at the Top: A Sign of Deal Disorder.(U.S. merger and acquisition industry forecast)
April 1, 2003... Many mergers or acquisitions, begun with enthusiasm and optimism, result in disappointment. In fact, widely accepted studies show that m&a transactions fail between 50% and 75% of the time. One of the main reasons is leadership clash. ...