Based on June quarter earnings call results, management teams have less visibility into Sales pipelines, Revenue forecasts and Profitability in the aggregate than several months ago. This in turn causes would be acquirers to haircut purchase price valuations if not walk away from deals entirely. In the former case, valuation haircuts typically either stall deal … Continue reading It Takes Two to Tango. Don’t Expect M&A Activity to Accelerate Anytime Soon
Tag: mergers and acquisitions
PE firms can’t cut their way to prosperity in perpetuity. Strategic Acquirers We applaud when strategic acquirers defeat PE buyers for coveted assets (for a list of strategic acquirers that do M&A well click here). Our rationale is that strategic acquirers are typically motivated to optimize acquired assets so as to maximize ROIC over the … Continue reading The PE Model Is Unsustainable
It has leaked that semiconductor giant Broadcom (tkr: AVGO) is working to acquire CyberSecurity software company Symantec (tkr: SYMC). Semiconductor investors are not fans of the deal as AVGO shares have traded off 6% since the news leaked. Conversely, we like the prospective acquisition for a couple of reasons: First, Symantec’s recurring revenues will help … Continue reading We Applaud Creative M&A Strategies
Identifying acquisition targets is an arduous process. Machine learning can help. It is somewhat easier to identify acquisition targets today than it was 10 years ago given the advent of private company databases such as Bob's Guide, Crunchbase, CB Insights, PitchBook and others. However, we have yet to find a data service that combines a … Continue reading M&A Deal Sourcing – A Significant Opportunity for Machine Learning
To borrow a line from one of America's all-time great CEOs, Dr. John Malone - "Big Bubbles Get Bigger - Little Bubbles Disappear" There is less surface tension as bubbles rise thus they continue to expand. The same is true of technology companies both from an M&A perspective as well as from a competitive standpoint. … Continue reading Big Bubbles Get Bigger
We all want to feel special, to believe we make a difference, that we contribute to society whether it be through job creation, volunteering our time or some other means. M&A is no different. Target company CEOs and management teams want to feel loved. This is especially true of founder CEOs. Should a founder CEO … Continue reading We All Want to Feel Loved. M&A Is No Different.
Some companies execute smart, strategic acquisitions better than others. Here’s a short list of publicly-traded FinTech & Info Services companies that do M&A well: CoStar Group (tkr: CSGP), Intercontinental Exchange (tkr: ICE), IHS Markit (tkr: INFO) SS&C Technologies (tkr: SSNC) and Verisk (tkr: VRSK). Click Here for Revenue, EBITDA and related metrics. We love FinTech … Continue reading Build. Acquire. Repeat.Premium