Mergers and Acquisitions – How to Avoid a Bad M&A Deal

The largest mergers and acquisitions ever recorded include deals such as the $71.3 billion purchase of 21st Century Fox by Walt Disney Company in 2019. These massive deals are often hailed as success stories, but reality is that a lot of M&As are actually disasters. Failures can be caused by a variety of reasons, including overpaying or cultural differences. It is important to learn from the mistakes of others. Our free guide offers information on how companies can avoid a disastrous M&A deal.

M&A activity slowed in the second half of 2022, due to macroeconomic uncertainties and volatile capital markets. However, there are signs that the pace of strategic transactions could increase soon.

When companies consolidate, they employ two main methods: mergers or acquisitions. A merger is the process of combining two companies into one entity, and an acquisition involves purchasing a company through cash, stock or the assumption of debt and then folding that company into your own operations.

In a buyout the acquiring company acquires all the assets and liabilities of the goal, leaving them with nothing other than cash, or maybe debt. Blackstone’s acquisition of Italian infrastructure group Atlantia for $28,6 billion and Brookfield’s acquisition of Deutsche Funkturm tower business for $5 billion are two examples.

US private equity firms have joined the trend of buying European assets. Seven of the top ten deals of the year involved US private equity firms including Blackstone’s $28,6 million purchase of Atlantia and Bristol-Myers Squibb’s $28,6b acquisition of Celgene Cancer Drug Company.

Capital raising process

Leave a Comment

Your email address will not be published. Required fields are marked *