Mergers & Acquisitions: The Dealmaker's Journal articles from November 2007

Mergers & Acquisitions: The Dealmaker's Journal archives from November 2007

Irrational Protectionism.(Editorial)
November 1, 2007... In this month's cover story we tackle the growing power of foreign acquirers. The author of the story, Chris O'Leary, likens them to a new breed of international tourist, who may view New York first and foremost as a shopping destination, and...

Who's Who.
November 1, 2007... ACG Board 0f Directors Paul Stewart* Chairman pstewart@pscapitalpartners.com T. Patrick Hurley Jr. ACG Immediate-Past Chairman phurley@mmadvisors.com James F. O'Donnell III* Director at Large ...

Globe-Trotters: ACG embarked on a world tour to tout its recent cross-border transactional study.(Association for Corporate Growth)
November 1, 2007... ACG Vice Chairman Harris Smith recently traveled to Europe in support of the ACG/Grant Thornton cross-border transactional study. His itinerary included Paris, Frankfurt and Vienna, where he met with Chapter leaders. ACG France...

ACG Wisconsin - On a Roll! Following a strategic planning session, the Wisconsin Chapter is poised for growth.
November 1, 2007... Since the Chapter was founded 21 years ago, ACG Wisconsin has preserved a corporate focus. Our leaders have maintained that focus with an emphasis on member quality, not quantity. We have been and continue to be a group that selects its...

ACG Boston and ACG Chicago Name Chapter CEOs: Gail Long and Craig Miller are each elevated to chief executive.(Gail Long)(Craig Miller)
November 1, 2007... ACG Boston announced that Gail Long has joined the organization as CEO. Long, a longtime executive in Boston-area commercial banking and private equity, will lead the Chapter and focus on expanding the organization and its member services....

Dabbling in Debt: A recent panel discussion gave prognosticators a chance to weigh in on the current credit crunch.(Discussion)
November 1, 2007... ACG Houston hosted a gathering recently at the offices of GulfStar Group Investment Bankers, featuring many of the city's leading M&A executives. To give an insider's view into how the credit squeeze will impact dealmaking, Jeffrey...

Digging a Hole to China: Ralph Pollock, of AsiaPacific Access was the highlight at a recent ACG Denver luncheon.
November 1, 2007... If you dig a hole to China from the U.S., you'll end up in Madagascar, at least according to Ralph Pollock, CEO, AsiaPacific Access. As ACG Denver learned from Mr. Pollock's luncheon keynote in September, there is a new world of opportunity...

What players in the mid market are talking about.(Francis Koenig)
November 1, 2007... PE's Raunchier Side? The Wynn Hotel in Las Vegas played host to a private equity conference in October. While most industry pros typically know what to expect at these events, the Las Vegas get together was probably a tad different....

Tomorrow's Deals: Taking stock of what dealmakers are looking at.
November 1, 2007... Soupy Sales The dislocation in the credit market didn't scare off all sellers. Campbell Soup is still looking to sell its Godiva chocolate division, and according to Bloomberg, anticipates fetching between $1 billion and $1.5 billion for the...

Beltway Monitor.(influence of military government on divestments of business enterprises )
November 1, 2007... Even if there's a seller, who's buying? As tensions rise in Myanmar, President George W. Bush has begun tightening U.S. sanctions against the military regime that controls the country, formerly known as Burma. The U.S. Department of the...

Polite Conversation: In the new dealmaking environment, it's the weaker companies who are being shopped. And it's the turnaround pros who'll be ready to pounce.
November 1, 2007... "Interest rate changes have far less of an impact on LBO returns than changes in leverage... Around 90% of the return is generated from resale at a higher price." -Wilbur Ross, at SourceMedia's "Financial Services M&A" panel, held on...

Losing Their Bloom: A recent court decision demonstrates why earnout provisions often crater under the stress of a failed deal.
November 1, 2007... In theory, earnout provisions are supposed to help unite buyers and sellers. In reality, however, these structures often end up sparking disagreement as ambiguity around the earnout clause can become contentious when deals don't live up to...

Asset Manager Consolidation Carries On: The dislocation in the credit markets has had little impact on M&A among asset managers.
November 1, 2007... It was a rough summer for the hedge fund community, particularly those linked directly to Wall Street's major investment banks. UBS shuttered Dillon Read Capital Management; Bear Stearns stood idly by as two of its internal hedge funds...

Default Wave Seen Forming: Bankruptcies will occur, but it should create opportunities.
November 1, 2007... In mid September Standard & Poor's issued new research, warning that 2008 could see a dramatic climb in the amount of corporate defaults. In line with much of the gloomy news hovering around the deal market, lately, the ratings agency...

On Target? Onlookers wonder if Target acted too slowly in trying to unload its credit card business.
November 1, 2007... "Expect more, pay less" espouses Target Corp.'s marketing tag line. Of course, the retailer didn't have the sale of its $7 billion credit card business in mind when it came up with that. However, after years spurning would be buyers for...

Opportunity Or Trouble? With the bulge brackets still staggering, some mid-sized investment banks are positioned to seize on the opportunity.
November 1, 2007... Large investment and commercial banks are not alone in being affected by the current climate in the credit markets. But unlike large banks, which find themselves sharing a boat of woe, middle-market banks have not been saddled with billions...

Amid Market Standstill, Mega LBO Shops May Look Downstream: Middle market buyers beware! A large-market firm may crash your next auction.
November 1, 2007... The struggle that private equity groups have encountered in the face of the credit market retrenchment has nowhere been more apparent than in the headline-grabbing, high-profile megadeals. September's best example was Kohlberg Kravis Roberts'...

Avoiding Fashion Mistakes: As PE goes gaga over luxury, the best bet may be to avoid the next fad.
November 1, 2007... Amass multiple PE pros in a room, and chances are that very few would qualify as fashion forward. Rather, the assorted collection of black suits, white shirts and Hermes ties would convey a style better described as "refined conservative."...

PE's Next Play: Contrarian Recruiting: Mid market firms may use the current weakness in the market to stock up on top talent.(private equity)
November 1, 2007... In mid September, ICV Capital Partners and Palladium Equity Partners sponsored a panel at the Harvard Club, featuring junior professionals who could share their experiences of working at a private equity firm. The goal of the event was to get...

The New Private Equity Toolbelt: As the asset class shifts from a financial engineering to an operational model, top "operators" in the business share their best practices.(Interview)
November 1, 2007... Whether dealing in boom times or a downturn, most private equity investors realize that future returns won't be solely a result of "buying right." Multiple expansion, in recent years, has often been factored out of the investment calculus,...

Slow and Steady: Canada's "ultra-conservative" nature could prevent the turmoil in the U.S. deal market from spilling over across the border.
November 1, 2007... While most U.S. dealmakers would at least consider a Canadian acquisition, not everyone is rushing the border to get deals done. Those who aren't particularly compelled to look North often hit on a couple of key themes, namely citing that the...

Canada's Bears.(influence of credit crunch on Canadian economy and mergers and acquisitions)
November 1, 2007... The surge of the Canadian dollar, nicknamed the loonie, reflects the strength of the overall economy in Canada. However, its rise also poses a problem as far as just how resilient the market will be, and according to some economists, signs of...

M&A Fuels Canada's Energy Sector: Consolidation trend seen bubbling amid the changing landscape of Canada's energy industry.
November 1, 2007... When it comes to the energy business, Canada already has one of the most active M&A markets in the world. But deal making is climbing to dizzying new heights thanks to a number of factors, including the plummeting price of natural gas, the...

Case Study: BCE Inc. - A Clear Model for Success.(Case study)
November 1, 2007... Timing can mean the difference between closing the deal or losing it. In mid-April BCE Inc. (Bell Canada Enterprises), the Montreal-based owner of Bell Canada, announced that it was reviewing its strategic alternatives. The competitive...

Selling Family Businesses in Canada.
November 1, 2007... According to the Grant Thornton Family Enterprise Insights 2007 report, more than half of mid-sized family enterprises in Canada anticipate a change of ownership in the next ten years, with two-thirds of those expecting the change to occur in...

A Red Carpet Reception? as foreign buyers descend, pros wonder if the deal market will remain hospitable to outsiders.(Industry overview)
November 1, 2007... In a summer defined by wild rumors and vicious market downswings, it may have been the strangest story of all: as Rupert Murdoch battled and ultimately pushed through his $5 billion acquisition of news provider Dow Jones, a rival offer was...

For the People, Buy the Company.
November 1, 2007... As certain countries diversify their investments, price is no object The idea of the U.S. government buying The Financial Times or even a hotel in Scotland, might seem absurd to some. But countries such as China, Russia and a number of...

And About that Defense Budget? It's not a favorite topic on the campaign trail, but dealmakers are wondering how the next President will treat military spending.
November 1, 2007... When John Edwards spoke to a student-populated crowd at the University of New Hampshire - a "town hall" meeting that was broadcast live on MTV and online via MySpace - the former North Carolina Senator tossed out a number of ambitious plans...

A Deeper Dive: Canaccord Adams aims to serve emerging growth companies through the recent launch of its M&A arm.(Industry overview)
November 1, 2007... Financial services firm Canaccord Adams, the capital markets division of the publicly held Canaccord Capital, recently launched a merger-and-acquisitions group to advise technology, life sciences and consumer companies. The new group...

Winning with Better Forecasts: A guest article from Duff & Phelps identifies how improved projections can help buyers succeed.
November 1, 2007... Getting the deal done" is only the initial part of the equation when it comes to making successful acquisitions. Of even greater importance is the question of whether the deals, once completed, will beat the odds and grow to become a...

The Changing Scene.(Appointments by compaines)(Company overview)
November 1, 2007... Actis Capital - Lim Meng was named a partner in the private equity firm's Chinese headquarters. He joins Actis from GIC Special Investments, the private equity arm of the government of Singapore. AIG Capital Partners - Serkan Elden has...

Hiring Remains Brisk: The M&A market didn't let a little credit dislocation impede its hiring rush.(Brief article)
November 1, 2007... One might assume that hiring would take a backseat as investors and companies digest the slowdown in the credit markets. But to the contrary, hiring was brisk to close out the summer (see related story page 42). Among the notable new hires in...

The Sage Group.(The independent investment bank has appointed Aimee Troyen as a managing director.)(Brief article)
November 1, 2007... The independent investment bank named Aimee Troyen as a managing director and the head of the firm's New York office. Her role there will entail expanding the firm's New York office and building the firm's presence in the middle-market...