Three Key Ingredients for a Successful Roll-Up Strategy
Over the last several months, we’ve talked to numerous businesses contemplating roll-up strategies. These businesses represent a wide cross section of industries ranging from industrial manufacturing, financial services, and medical services to IT software and services. We expect add-on and roll-up activity to be a large piece of the overall M&A pie in 2020 and […]
$100 billion of M&A in a day
“Merger Madness” was the headline this Monday as $100 billion in deals were announced. Halliburton (acquiring Baker Hughes) and Actavis (acquiring Allergan) shared the spotlight. These two big deals are just the latest in an already strong year for M&A. The total value for acquisitions of U.S. companies stood at $1.354 trillion before Monday’s news, up […]
A good question to consider before hiring that executive
Jamie Dimon of JP Morgan Chase spoke a few years back to a business school class and he posed an interesting question. When considering whether to promote or hire an executive, ask yourself “would you want your kids to work for this person?” It was asked in the context of what makes a good executive […]
M&A: Keep it clean. Disposables, protective equipment, single-use technologies, and cleanroom operations on the rise.
The world can be a messy place. Companies that focus on keeping it a bit (or a lot) cleaner play an important role in public health, medical research and pharmaceutical manufacturing, to name just a few areas. The economic impact of contamination in those fields can be tremendous. Add to that the public […]
Bright Summer for Manufacturing – Best Performance in a Decade
This August was not the time to be away on vacation if you’re in manufacturing. According to the Institute for Supply Management (ISM), new orders reached a level not seen since April 2004 and the pace of growth rose in August to its highest level since March 2011. The ISM said its index of national factory […]
Recurring revenue counts in industries far beyond software
The recurring revenue (“RR”) business model gets a lot of attention in software M&A and growth investment, and for good reason. Most growing subscription/ software-as-a-service (SaaS)-based software companies trade in the public markets for north of 6x revenue and many of those fortunate few with annual revenue growth over 40% trade for over 10x revenue. […]
Three perspectives on M&A value: what you pay, what you get, and what you give.
Warren Buffett is fond of quoting Ben Graham’s adage: price is what you pay; value is what you get. Mr. Buffett is a renowned investor and acquirer of companies, but what does this adage mean when it comes to selling? For the seller, price is what you get. What do you give? In M&A, […]
Healthcare M&A: Big deals getting all the attention
2014 has to go down as the year of the big announcement (it may also be remembered as the year of the failed Pfizer bid for AstraZeneca). One might think these mega deals are crowding out middle market activity. But that’s only true in the newspapers. In fact, there have been over 1,000 healthcare deals […]
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