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

The biggest mergers and acquisitions of all time include deals like the $71.3 billion acquisition of 21st Century Fox by Walt Disney Company in the year 2019. Many of these massive deals have been praised by media as success stories. However many M&As result in disastrous. From overpaying for the deal to strong cultural differences, the causes for failure are many and diverse. Our free guide offers insight on how to avoid a negative M&A transaction.

M&A activity slowed down in the second quarter of 2022 due to macroeconomic uncertainty and volatile capital markets. There are indications that the pace may increase in the near future for strategic transactions.

When companies consolidate, they typically use two processes that include mergers and acquisitions. A merger is the combination of two businesses to create a single entity. An acquisition is the purchase of a business, either through cash or stock, or even debt and then https://vdr-tips.blog integrating it into your business operations.

In a buyout, the acquiring company purchases all of the assets and liabilities of the target, leaving it with nothing other than cash (and possibly debt). Examples include Blackstone’s $28.6 billion take-private of Italian infrastructure company Atlantia and Brookfield’s purchase of $5 billion of Deutsche Funkturm’s tower business.

US private equity firms have joined the trend of buying European assets. Seven of the top ten deals of the past year involved US PE firms, including the $28.6 billion acquisition of Atlantia by Blackstone and the $28.6 billion takeover of Celgene’s cancer drug company by Bristol-Myers Squibb.