Operating at the Intersection of Technology and the Capital Markets
Tag: Acquisitions
Investors finally figured out that ZoomInfo (ticker: ZI), wasn't really a long-term growth story and that once corporate buyers began to pull back on Sales & Marketing spend, ZI would feel the pain. Further, I've always questioned what ZoomInfo considered to be organic revenue. ZI's Q3 2023 Revenue outlook calls for approximately 7-8% revenue growth … Continue reading ZoomInfo (ZI) Won’t Be The Last Outlook Haircut
It feels as though Microsoft (MSFT) and perhaps the largest Tech companies are too big to be held accountable. While I much prefer MSFT CEO Satya Nadella to former CEO Steve Ballmer, nowhere on MSFT's recent EPS call was there a single question about organic revenue growth. Acquisitions likely accounted for at least one percentage … Continue reading Microsoft: Too Big To Be Accountable?
Yours truly received some pushback end of last year when I said that higher interest rates and a slowing economy would slow the pace of Tech M&A activity. The number of Tech M&A deals in November was down more than 47% year-over-year. Tech M&A volume has experienced double-digit percentage, year-over-year declines since February of this … Continue reading M&A Activity Continues To Slide
The thin margin grocery business is a scale game. Grocery chain operators will continue to offset rising input costs (primarily food and labor) with higher retail prices and an increased focus on self-service and automation. Walmart (WMT) is the leading grocery chain in the U.S. and only Amazon (AMZN), has the balance sheet to compete. … Continue reading Kroger and Albertsons Rumored Deal Makes Sense
One of the most important elements when evaluating an M&A target is the target company's Product & Services portfolio. The ultimate Product question to be answered is: "Does it make more sense to build or acquire?" It is important for the acquiring company to answer a few key questions about the target company's product portfolio. … Continue reading Evaluating M&A Target Products & Services
"G" is the most important letter in "ESG" investing. "G" or "Governance" refers to the men and women who comprise corporate management teams and Boards. Management - the CEO in particular - matters a great deal as to the long-term success of any company. Too frequently CEOs and Boards put Executive Compensation ahead of corporate … Continue reading CEOs That Put Themselves First
Back in May we wrote that this is a difficult environment in which to get M&A transactions done. Bloomberg reports that more than $150 billion of M&A deal activity has been "scrapped or stalled" given the interest rate environment and economic backdrop. Our view is that the state of M&A deal activity will get worse … Continue reading The M&A Slowdown
CEOs and Institutional Investors should not count on strategic acquirers or PE firms to bail out underperforming stocks (or private company holdings for that matter). Not only is the cost of capital significantly higher for would-be acquirers, but target company revenue and profitability forecasts have substantially less visibility and therefore more risk today than they … Continue reading Don’t Count On M&A To Bail You Out
AWS, Azure and Google Cloud are poised to drive vertical M&A for years to come. By vertical M&A we refer to M&A transactions that would enable to AWS, Azure and Google Cloud to build a footprint at the application layer across various industry verticals. The obvious acquisition targets would be customers and partners of AWS, … Continue reading The Big 3 Cloud Giants Are Poised To Drive M&A
Today we announce the winner of the "Information Services" category: Information Services: Doug Peterson, President and CEO, S&P Global Inc. (ticker: SPGI). SPGI shares have performed well but the primary reason why we choose SPGI CEO Doug Peterson over Gartner (ticker: IT), CEO Gene Hall or MSCI (ticker: MSCI), CEO Henry Fernandez was Peterson's pursuit … Continue reading CEORater 2021 Technology CEOs of the Year. Part 3 of 3: Information Services
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