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
Tag: mergers and acquisitions
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
SS&C Technologies' (tkr: SSNC) preliminary approach about a potential offer for U.K.-based RPA ("Robotic Process Automation"), firm Blue Prism is detailed below. Read Blue Prism's deal press release HERE.SS&C's proposal values Blue Prism at approximately $1.6 billion. Blue Prism generated recurring revenue of approximately 154 million GBP in FY'20. Read Blue Prism's 1H 2021 investor … Continue reading RPA M&A: SS&C and Blue Prism
Our view is that the Fed will only truly pursue an extended tightening course (full wind down of QE followed by rate hikes), if price inflation continues to where the Biden Administration feels it will cost the Democrat Party in the 2022 mid-term elections and/or hurt Biden's chances for re-election in 2024. The Fed is … Continue reading Our View On Fed Tightening and M&A
Tickers mentioned: Alphabet (GOOG), Amazon (AMZN), Apple (AAPL), Facebook (FB), Microsoft (MSFT) In May we wrote about Amazon potentially acquiring MGM. That deal was subsequently announced and will be reviewed by the FTC (per the WSJ) under new FTC Chair Lina Khan. We recently mentioned Ms. Khan as being tough on Big Tech. The FTC's … Continue reading Big Tech Firms Will Find It More Difficult To Execute M&A
We expect CEOs and CFOs to retire at a record pace over the next 12 months due to burnout associated with COVID-19. Last year senior executives scrambled to set-up Work-from-Home environments. This year it will be another headache, namely defining back-to-the-office policies and executing them. At many companies it is the CFO who is the … Continue reading We Expect CEOs and CFOs To Retire at A Record Pace
One of the great distortions caused by the joint fiscal and monetary policy of 2020 and 2021 is that equities and the lowest-rated non-investment grade credits are two of the all too rare places where investors may earn a return. Savers and Fixed Income investors be damned. Many companies are enjoying their stocks trading at … Continue reading Investors Should Ask More of Their Management Teams
Many investors are aware of disruptive FinTech companies such as Apple Pay, Amazon Pay, Betterment, PayPal, Robinhood, Square and Stripe to name a few. These companies are disrupting the legacy FinTech landscape as well as traditional Banks in the pursuit of customers, deposits and payment volume. There is a new disruptive FinTech organization in town … Continue reading Bank & FinTech Consolidation to Continue. Central Banks as Disruptors.
The best management teams know to plan for the worst and hope for the best. COVID was a reminder to many business leaders that anything can come out of left field and blind side a business. Despite the COVID lesson we believe that many CEOs and CFOs take certain financial conditions for granted as if … Continue reading Plan for the Worst. Hope for the Best.
Will Apple, Disney or Netflix pursue an acquisition of NewCo? Last year we wrote that AT&T should sell WarnerMedia. On Monday AT&T (tkr: T) led by John Stankey agreed to spin-off its WarnerMedia asset and to combine it with John Malone's Discovery (tkr: DISCA) in a new, publicly-traded company led by Discovery CEO David Zaslav. … Continue reading AT&T Took Our Advice But It Does Not Solve The Scale Problem