international mergers & acquisitions international - Booz & Company

378 Pages·2008·5.81 MB·English

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“2008 International Mergers & Acquisitions:
Creating Value in an Increasingly Complex Corporate Environment”
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E-BOOK
international
mergers & acquisitions
creating value in an increasingly complex
corporate environment
2008

Click below to read the article by Booz & Company
Auctions in the M&A process
BY JusTIN PETTIT
Published by
Financier Worldwide
The Exchange
19 Newhall Street
Birmingham
B3 3PJ
United Kingdom
Telephone: [phone]
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Email: [email protected]
www.financierworldwide.com
ISBN: 978-0-9558826-0-9
First edition
Copyright © 2008 Financier Worldwide. all rights reserved.
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to be general opinions and should not be relied upon as legal or financial advice.
Opinions expressed herein do not necessarily represent the views of the author’s
firms or clients.
FW
2008 International Mergers & Acquisitions:
Creating Value in an Increasingly Complex Corporate Environment
E-BOOK
2008 INTERNATIONAL MERGERS & ACQUISITIONS
g contents
NOTE: These Contents pages are interactive.
Clicking on an article will take you to the relevant page.

About the Publisher . . . . . . . . . . . . . . . . . . . 7
Acknowledgement . . . . . . . . . . . . . . . . . . . . 8
CHAPTER ONE:
IntroductIon 9
2007: a story of two halves . . . . . . . . . . . . . . . . .10
Sovereign wealth funds . . . . . . . . . . . . . . . . . .16
CHAPTER TWO:
StatIStIcal data 19
M&A trends 1997-2007 . . . . . . . . . . . . . . . . . .20
Financial sponsor trends 2000-2007 . . . . . . . . . . . . . .29
M&A and private equity in 2007. . . . . . . . . . . . . . . .34
CHAPTER THREE:
Global outlook 39
Will the next wave of M&A create more value? . . . . . . . . . . .40
International M&A takes centre stage . . . . . . . . . . . . . .43
Recent developments and their implications for M&A in 2008 . . . . . . .46
Emerging markets and M&A activity . . . . . . . . . . . . . .49
Developments in merger control in the EU and worldwide . . . . . . .53
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INTERNATIONAL MERGERS & ACQUISITIONS 2008
CHAPTER FOUR:
PrIvate equIty marketS 57
The case for value creation focused LBOs. . . . . . . . . . . . .58
Is there a credit crunch in the mid-market? . . . . . . . . . . . .61
The changing face of the MBO . . . . . . . . . . . . . . . .64
CHAPTER FIVE:
StructurInG and neGotIatInG the deal 67
Preparing a company for sale to maximise value . . . . . . . . . . .68
Steps to a successful private company sale. . . . . . . . . . . . .71
Non-binding preliminary agreements: use ‘good faith’ with caution . . . . .74
Auctions in the M&A process . . . . . . . . . . . . . . . .78
Domestic versus foreign acquirers: managing an international sale process . . .81
Going global: successfully negotiating multi-jurisdiction transactions . . . . .85
Key issues in structuring and negotiating leasing company acquisitions . . . .88
Drafting material adverse change clauses . . . . . . . . . . . . .93
Deal certainty and recent dislocations in the credit and M&A markets . . . .97
Drafting and negotiating purchase agreements to anticipate challenges . . . 101
Effective earn-out provisions in sale & purchase agreements . . . . . . 104
Risk allocation – driving force behind the M&A process. . . . . . . . 106
Directors’ duties in M&A transactions . . . . . . . . . . . . . 109
M&A – an insurable risk? . . . . . . . . . . . . . . . . . 112
Exploring the potential of joint ventures to create value as
opposed to outright M&A . . . . . . . . . . . . . . . . 115
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2008 INTERNATIONAL MERGERS & ACQUISITIONS
CHAPTER SIX:
accountInG and fInancIal challenGeS 118
Valuing assets in M&A under IFRS 3. . . . . . . . . . . . . . 119
Growing influence of IFRS in M&A: why dealmakers should care . . . . . 122
Valuation and solvency analysis in failing firm claims . . . . . . . . . 125
CHAPTER SEVEN:
due dIlIGence and InteGratIon 128
The evolution of diligence: how a multi-discipline approach gives buyers a
competitive edge . . . . . . . . . . . . . . . . . . . 129
Commercial due diligence and the nine levers of corporate growth . . . . 133
Sell-side online datarooms . . . . . . . . . . . . . . . . 137
Utilising the extended customer chain to enhance due diligence . . . . . 139
Due diligence trends in Europe – commercial, operational and cultural twists . 144
Due diligence and integration planning in cross-border transactions . . . . 146
Breakthrough value creation in M&A . . . . . . . . . . . . . 150
Cross-border M&A: downstream implications . . . . . . . . . . 153
Integration – the key to a successful merger . . . . . . . . . . . 157
Protecting your cultural assets through an integration . . . . . . . . 161
Human resources – a fundamental part of the planning phase . . . . . . 164
Maximising deal value through the human side of M&A integration . . . . 167
Post-deal soft skills in emerging markets . . . . . . . . . . . . 170
IT integration challenges in M&A . . . . . . . . . . . . . . 174
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INTERNATIONAL MERGERS & ACQUISITIONS 2008
CHAPTER EIGHT:
envIronmental ISSueS 177
Climate change and the cost of carbon: incorporation into M&A deals . . . 178
Identifying opportunity in the carbon era . . . . . . . . . . . . 180
The affect of market turmoil on the treatment of
environmental liabilities in transactions. . . . . . . . . . . . . 183
CHAPTER NINE:
Sector analySIS 185
Trends in independent oil company M&A . . . . . . . . . . . . 186
European airline industry: value creation through M&A . . . . . . . . 190
M&A boom in the CEE telecommunications market . . . . . . . . 195
CHAPTER TEN:
reGIonal vIew – the amerIcaS 198
The M&A world comes to the United States . . . . . . . . . . . 199
Taking advantage of the weak US dollar . . . . . . . . . . . . 203
Deal or no deal. . . . . . . . . . . . . . . . . . . . 206
A brief glossary of US M&A terms . . . . . . . . . . . . . . 209
Recent developments in Canadian M&A . . . . . . . . . . . . 212
New rules of the game in Canadian antitrust . . . . . . . . . . . 216
Canada’s foreign investment review process . . . . . . . . . . . 219
New developments spur M&A growth in Latin America . . . . . . . 222
New incentives for investing in private equity in Chile . . . . . . . . 226
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