The largest mergers and acquisitions ever have included deals like the $71.3 billion acquisition of 21st Century Fox by Walt Disney Company in the year 2019. Many of these huge deals have been praised by the media as success stories. However, many M&As end up being disasters. Failures can be caused by several factors, such as overpaying or cultural differences. It is important to learn from the mistakes of others. Our free guide will provide an insight into how companies can avoid a bad M&A deal.
M&A activity slowed during the second period of 2022 because of the uncertainty in macroeconomics and volatile capital markets. However, there are indications that the pace of strategic transactions may get back to normal soon.
When companies consolidate, they employ two main methods such as mergers or acquisitions. A merger is the combination of two companies into one entity. An acquisition is the acquisition of an entity, whether with cash or stock, or even debt before incorporating it into check my source your operations.
In a buyout, the acquiring company purchases all the assets and liabilities of the intended target, leaving them with nothing other than cash, or maybe debt. Blackstone’s acquisition of Italian infrastructure company Atlantia for $28,6 billion, and Brookfield’s purchase of Deutsche Funkturm tower business for $5 billion are two examples.
US private equity firms are getting caught up to the trend of buying European assets. Seven of the top ten deals over the past year involved US PE firms including the $28.6 billion purchase of Atlantia by Blackstone and the $28.6 billion acquisition of Celgene, a cancer drug company by Bristol-Myers Squibb.