; Mergers _ Acquisitions - Download as PowerPoint
Documents
Resources
Learning Center
Upload
Plans & pricing Sign in
Sign Out

Mergers _ Acquisitions - Download as PowerPoint

VIEWS: 35 PAGES: 26

  • pg 1
									Mergers & Acquisitions
                                                                                             $ Value of Deal
              Target Name                            Acquiror Name               Deal Date        (mil)

UnionBanCal Corp,San Francisco,California
                 (UB)                       Bank of Tokyo-Mitsubishi UFJ Ltd     8/12/2008      2,858.40


      Longs Drug Stores Corp (LDG)              CVS Caremark Corp (CVS)          8/12/2008      2,637.40


    H&R Block Financial Advisors Inc          Ameriprise Financial Inc (AMP)     8/12/2008        315


   Turbochef Technologies Inc (OVEN)              Middleby Corp (MIDD)           8/12/2008       196.6

              Netstore PLC                            2e2 Group Ltd              8/12/2008       105.5

                 Fry Inc                       Micros Systems Inc (MCRS)         8/12/2008        66.7


  Soundpath Conferencing Services LLC       Premiere Global Services Inc (PGI)   8/12/2008        20.1

   Banque Agricole Et Commerciale Du
              Burkina SA                        Ecobank Transnational Inc        8/12/2008         20


Scan Mining AB-Blaiken & Svarttrask mines
           & processing plant                   Lappland Goldminers AB           8/12/2008         6.3

     Jinggong Shaoxing Solar Energy           Zhejiang Jinggong Science &
           Technology Co Ltd                       Technology Co Ltd             8/12/2008         5.7

   Xemplar Energy Corp-Otish Uranium
               Portfolio                          Santoy Resources Ltd           8/12/2008         3.4

                                            Shandong Sun Paper Industry Joint
   Qingdao Sun Industry & Sun Co Ltd                 Stock Co Ltd                8/12/2008         n/a

             Sergipe Blocks                     Brownstone Ventures Inc          8/12/2008         n/a
            Balazhal Gold Mine                          OAO SeverStal              08-12-2008    n/a

        i2 Technologies Inc (ITWO)              JDA Software Group Inc (JDAS)      08-11-2008   326.90

Atlantis Plastics Inc-Plastic Films Business       AEP Industries Inc (AEPI)       08-11-2008   87.00

         Country Pipelines Pty Ltd                        APA Group                08-11-2008   20.80

            Berau Coal Project                       Strike Resources Ltd          08-11-2008   13.70

 Trinity Mission Health & Rehabilitation of
                                                National HealthCare Corp (NHC)     08-11-2008   13.30
                 Charleston

           Joban Kosan Co Ltd                           Investor Group             08-11-2008   11.80

 Bodet & Horst USA LP- Knitted Mattress
                                                         Culp Inc (CFI)            08-11-2008   10.50
            Fabrics Division

                  Himax                                   Stylife Corp             08-11-2008    8.00

           Joban Kosan Co Ltd                  DBJ Corporate Toshi Jigyo Kumiai    08-11-2008    6.40

             Dolly Silver Corp                    Carrington Acquisition Corp      08-11-2008    4.30

      Paulsens East Iron Ore Project                 Strike Resources Ltd          08-11-2008    3.10

                 Samson                            Aderans Holdings Co Ltd         08-11-2008    1.60

           BG Laboratories LLC                  Standex International Corp (SXI)   08-11-2008    1.60

  Xinjiang Huitong Wind Turbine Co Ltd          Xinjiang Huitong(Group)Co Ltd      08-11-2008    1.00

         OutcomeManager Pty Ltd                      Technology One Ltd            08-11-2008    0.90

           Albury Strata Pty Ltd                           Teys Ltd                08-11-2008    0.60
    Delta Electronics(Jiangsu)Co Ltd-Machines         Delta Electronics(Thailand)PCL     08-11-2008   0.50

                Mikam Graphics LLC                       InnerWorkings Inc (INWK)        08-11-2008   n/a

                  Byers Food Inc                           Winsted Holdings Inc          08-11-2008   n/a

               Cluff Lake Area Claims                       ESO Uranium Corp             08-11-2008   n/a

          Financial Computer Support Inc                  Morningstar Inc (MORN)         08-11-2008   n/a

               Colubris Networks Inc                     Hewlett-Packard Co (HPQ)        08-11-2008   n/a

                                                        Long Success International
       Undisclosed Paper Manufacturing Co                                                08-11-2008   n/a
                                                              (Holdings)Ltd
           MoneyCard World Express SA                MoneyGram International Inc (MGI)   08-11-2008   n/a

Dawnay Day Sirius Real Estate Asset Management Ltd     Principle Capital Partners Ltd    08-11-2008   n/a

                  Link One Co Ltd                               E-OWNERS                 08-11-2008   n/a

               Bada Heavy Industries                           Hicel Co Ltd              08-11-2008   n/a

                                                     Compagnie Financiere Richemont
           Manufacture Roger Dubuis SA                                                   08-11-2008   n/a
                                                                  SA
            Single Touch Interactive Inc                 Single Touch Systems Inc        08-11-2008   n/a

                Local Pharmacy Ltd                          Omnicare Inc (OCR)           08-11-2008   n/a

                    RoadLoans                          Santander Central Hispano SA      08-11-2008   n/a

        Gerlach Art Packers & Shippers BV                 Nurminen Logistics Oyj         08-11-2008   n/a

               Kowa Sangyo Co Ltd                             Rengo Co Ltd               08-11-2008   n/a

           Platinum Residence Sdn Bhd                      Tanco Holdings Bhd            08-11-2008   n/a

    Trinity Mission Assisted Living of Charleston     National HealthCare Corp (NHC)     08-11-2008   n/a

              Deutsche Proventus AG                          AWD Holding AG              08-11-2008   n/a
                  Mergers & Acquisitions
     A merger occurs when one firm assumes all the
    assets and all the liabilities of another. The
    acquiring firm retains its identity, while the
    acquired firm ceases to exist. A majority vote of
    shareholders is generally required to approve a
    merger. A merger is just one type of acquisition.
    One company can acquire another in several
    other ways, including purchasing some or all of
    the company's assets or buying up its
    outstanding shares of stock.
Mergers and Acuqisitions - Small Business Encyclopedia. Available: http://www.answers.com/topic/mergers-and-acquisitions
 Horizontal, Vertical or Conglomerative
• A horizontal acquisition takes place between two
  firms in the same line of business. For example,
  one tool and die company might purchase
  another.
• A vertical merger entails expanding forward or
  backward in the chain of distribution, toward the
  source of raw materials or toward the ultimate
  consumer. For example, an auto parts
  manufacturer might purchase a retail auto parts
  store.
• A conglomerate is formed through the
  combination of unrelated businesses.
Mergers and Acuqisitions - Small Business Encyclopedia. Available: http://www.answers.com/topic/mergers-and-acquisitions
              Consolidation
• In a consolidation, an entirely new firm is
  created, and the two previous entities cease to
  exist.
• Consolidated financial statements are prepared
  under the assumption that two or more
  corporate entities are in actuality only one.
• The consolidated statements are prepared by
  combining the account balances of the individual
  firms after certain adjusting and eliminating
  entries are made.
• Another way to acquire a firm is to buy the
  voting stock.
• This can be done by agreement of management
  or by tender offer.
• In a tender offer, the acquiring firm makes the
  offer to buy stock directly to the shareholders,
  thereby bypassing management.
• In contrast to a merger, a stock acquisition
  requires no stockholder voting.
• Shareholders wishing to keep their stock can
  simply do so. Also, a minority of shareholders
  may hold out in a tender offer.
• A bidding firm can also buy another simply
  by purchasing all its assets.
• This involves a costly legal transfer of title
  and must be approved by the shareholders
  of the selling firm.
• A takeover is the transfer of control from one
  group to another.
• Normally, the acquiring firm (the bidder)
  makes an offer for the target firm.
• In a proxy contest, a group of dissident
  shareholders will seek to obtain enough
  votes to gain control of the board of directors.
                                              Sirius XM Radio Inc.
• Sirius Satellite Radio Inc.'s $2.76 billion all-stock
  purchase of XM Satellite Radio Holdings Inc.
  created a company with more than 18.5 million
  subscribers, making it the No. 2 U.S. radio
  operator after Clear Channel Communications
  Inc
• The company could report $300 million in
  earnings next year
• the company has "significant" growth prospects
  because it currently has cornered less than 10
  percent of the home and car market
• Federal Communications Commission approved
  in a 3-2 vote Friday July 25 all-stock buyout of
  XM, ending some 16 months of regulatory limbo
  for the nation's only satellite radio comp
Sirius XM Will Cut Executive Jobs. 8/14/2008. Bloomberg News. Available at http://www.bloomberg.com/apps/news?pid=20601103&sid=a0Cx5oGj1rt0&refer=us
              Inbev Anheuser-Busch Merger
• Belgian-Brazilian brewer InBev is to swallow US
  rival Anheuser-Busch in a 52 billion dollar (33
  billion euro) takeover creating the world's
  biggest brewer
• Anheuser-Busch board finally agreed on July 13,
  2008 to accept a sweetened bid that had been
  raised to 70 dollars a share in cash from 65
  dollars
• The new company will have net sales of about
  36 billion dollars a year, offering consumers
  about 300 brands, including Anheuser's
  Budweiser and Bud Light, and InBev's Stella
  Artois and Beck's
• In May 2006, A-B bought the right to brew
  Rolling Rock and Rock Green Light from InBev
  USA in an $82 million deal
• Grupo Modelo the Mexican group is 50 percent
  owned by Anheuser-Busch
• The companies said they expect to save 1.5
  billion dollars annually from 2011
• In 2007 Anheuser-Busch turned a profit of $2.12
  billion, up nearly 8 percent from $1.97 billion in
  2006.
• But its core brands of Budweiser and Bud Light
  continued to lag as sales of craft beers and
  imports rose
             Private Equity
• Tuck Center articles
• Private Equity Firms
  – KKR
  – Blackstone
  – Carlyle Group
  – Texas Pacific Group
                  Good Pay - Faces Behind the Figures
The buyout business is so profitable for those in charge that ten of its chieftains
           made Forbes' list of the wealthiest Americans last year.

      Henry Kravis                                  Alec Gores
      Kohlberg Kravis Roberts                       Platinum Equity
      $2.5 billion                                  $1.2 billion

      George Roberts                                Jerome Kohlberg
      Kohlberg Kravis Roberts                       Kohlberg Kravis Roberts
      $2.5 billion                                  $1.2 billion

      Stephen Schwarzman                            Wilbur Ross Jr.
      Blackstone Group                              WL Ross & Co.
      $2.5 billion                                  $1 billion

      Tom Gores                                     Nelson Peltz
      Platinum Equity                               Triarc
      $1.7 billion                                  $1.1 billion

      Thomas H. Lee                                 Theodore Forstmann
      Thomas H. Lee Partners                        Forstmann & Little
      $1.3 billion                                  $900 million




                         Source: Forbes.
Biggest private equity deals of 2006:

                      Value (in billions)   Date


HCA                   $21.0                 July 4


Kinder Morgan         $14.6                 May 29


Univision             $12.2                 June 27


Albertson's           $11.2                 Jan. 23


GMAC                  $7.4                  April 3
Biggest private equity deals of 2006: (Continued)



Aramark                       $6.3                  May 1

Michael's Stores              $5.9                  June 30

Travelport                    $4.3                  June 30
GE advanced
  materials                   $3.8                  Thurs.

Education Mgmt.               $3.4                  March 6

Source: Dealogic
Target Company                                            Deal Value ($bil)   YEAR




RJR Nabisco                                                    $31.0          1989

                             Six of the largest private
                             equity deals ever—after
Hertz                                                           15.0          2005
                             KKR's 1989 colossal
                             takeover of RJR Nabisco—
TDC                          all went down last year.           12.0          2005




SunGard data systems                                            11.4          2005




Browning-Ferris Industries                                      9.6           1999




QWESTDEX                                                        7.1           2003




Toys ―R‖ Us                                                     6.6           2005




neiman Marcus GROUP                                             5.1           2005




Metro-goldwyn-mayer                                             4.9           2005
Wealth
     Number of Millionaires in US
Number of              $1 MM                      $5 MM                 $10 MM $25 MM
 People
  Worth

  1995              3,770,000                   550,000                 230,000 50,000


  1998              5,430,000                   860,000                 300,000 60,000


  2004              9,050,000 1,440,000 530,000 110,000


Source: Robert Frank. (2007) Richistan: A Journey Through the American Wealth Boom and the Lives of the New Rich.
Publisher: Crown (June 5, 2007) ISBN-10: 0307339262
  • Half of American's total wealth has been created in the
    last 10 years and the richest 1% of Americans are
    earning about $1.35 trillion a year - greater than the
    national incomes of France, Italy or Canada.
  • There are in US 2 million households where the income
    may rise to as much as a $100 million. The $100 million-
    to-$1 billion crowd number in the thousands.
  • There are either 400 billionaires or a thousand - the
    debate is on.
  • Among millionaires, less than 10% inherited the money.
    Wall Street certainly has made many fortunes, but the
    "surest path" to mega-money is starting your own
    business and selling it. The numbers of entrepreneurs
    swell in the upper ranks.
  • Many manage to live beyond their considerable means.
    In these competitive times, it takes a lot of money to be a
    conspicuous consumer and the richest 5% are
    responsible for 20% of the nation's debt.
Sherryl Connelly (2007) Rich and even richer. NY Daily News, June 11th 2007.
http://www.nydailynews.com/entertainment/culture/2007/06/11/2007-06-11_rich_and_even_richer.html
http://hypertextbook.com/facts/2005/MichelleLee.shtml
                           Year               Number of Billionaires (US)
                              1982                                     13
                              1983                                     15
                              1984                                     12
                              1985                                     13
                              1986                                     26
                              1987                                     49
                              1988                                     68
                              1989                                     82
                              1990                                     99

Summary of Forbes World's Richest People


                Year                        1996         1997   1998   1999   2000   2001   2002   2003   2004   2005


    Number of Billionaires
                                             423         259    230    298    322    538    497    476    587    691
          (worldwide)

 http://hypertextbook.com/facts/2005/MichelleLee.shtml
  Tiger 21 Min of $10 MM to Invest
• Private Investing Club - 125 people total $7 Bil in
  assets. Portfolio Allocation:
   –   30% Stocks (US, intl and ETFs; limited stock picking)
   –    9% Cash and equiv
   –   16% Fixed income investments (Bonds, etc.)
   –   16% Real estate (not REITS – may own bldg.)
   –   11% Personal real estate
   –   10% Alternatives (e.g. hedge funds)
   –    9% Private equity
   –      Live on 3% of this
  US Trust 2007 Survey of Wealthiest US
    Individuals – Investment Allocation
• $5 MM to $25 MM
  – 34% US stocks
  – 17% Real estate
  – 15% Government securities & bonds
  – 12% Cash and equiv.
  – 10% International stocks
  – 8% Private equity
  – 2% Hedge funds
  – 2% Commodities
  US Trust 2007 Survey of Wealthiest US
    Individuals – Investment Allocation
• >$25 MM
  – 36% US stocks
  – 15% Real estate
  – 15% Government securities & bonds
  – 10% Cash & equiv.
  – 9% Private equity
  – 8% International stocks
  – 6% Hedge funds
  – 1% Commodities
       Stages of Wealthy
    Entrepreneurial Investors

• Accredited Investors - $200,000
• Angel Investors – Invest hundreds of
  thousands
• Venture Capitalists – Invest millions
• Private Equity Firms – Invest billions

								
To top
;