Let me tell you a story of how I discovered that the self-storage warehouse I use for storing my old shoes and books trades at a higher revenue multiple than most SaaS companies.
Digital business models and the innovation, efficiencies and new market opportunities they can offer are fueling an M&A storm. Today, traditional motives for M&A, such as the pursuit of synergies or gaining entry into a geographic market, are being replaced by the pursuit of digital transformation. For many companies, emphasis is now geared around acquiring new technologies or capabilities - these represent the promise of rapid growth and can help to “future-proof” a company as innovative and disruptive ways doing business become the new normal.
Research by leading consultancy firms indicates that supply chain synergies may constitute 30%-50% of merger-related increases in shareholder value. The purchase of goods and services often represents more than half of a company’s total costs, so procurement usually delivers a significant share of total synergies, with savings estimated to range from 5-25%. Procurement integration is therefore integral to delivering shareholder value.
In this webinar, Bernard Gunther of Spendata discusses how to unlock value from procurement integration. The agenda covers:
- An overview of why generating indirect cost-savings is important to merger economics;
- An analysis of how procurement integration can unlock value and prevent cost savings "being left on the table";
- Target areas to consider in achieving additional cost savings;
- How to put the proposed theories into practice;
- Recommendations on the data you need to be monitoring and analyzing to track your success in leveraging these tactics.
In looking to establish an M&A process, it’s important to start with the basics and add detail gradually. A common mistake is to “copy & paste” a sophisticated best practice process and to attempt layering it upon your organization. While the process might look great on paper, in reality there are likely to be too many steps and concepts to follow – many of which will feel foreign. Indeed, you may feel like you are just following process steps rather than focusing on what is most relevant and important to the deal.
The consumer goods sector experienced a record breaking year in 2017 with total deal value equaling ~$350bn, a 25% increase from $280bn in 2016. This increase was driven by strong mega-deal activity in 2017 (transactions exceeding $5bn) with eight mega-deals amounting to ~$200bn (versus five in 2016 totaling ~$30billion) – a notable example being Amazon’s $13.7bn acquisition of WholeFoods.
Massive strides in innovation are disrupting today's traditional transportation systems. Through ride-sharing, autonomous technology, alternative energy and fuel developments, investors and corporates have capitalized on transportation industry shifts. Now, sights are set on the new frontier of travel opportunities – aviation.
Slack is worth over $5 billion. Shopify, $10 billion. LinkedIn was acquired for $26 billion and Salesforce is nearing $100 billion in market cap.
The shared trait among these tech stars: a SaaS (software as a service) business model. Unlike physical inventory and brick and mortar governed growth, cloud- based software has created a rapid and profitable way for a company to scale.
For the last year, traditional and bio-pharmaceutical deal making has been in a holding pattern. Uncertainty regarding U.S. tax plan implications, steep deal prices, geopolitical uncertainties and questions around breakthrough drug performances – such as the first gene therapy from Spark Therapeutics and cancer-killing T-cells being sold by Novartis and Gilead – have all tempered M&A activity.
Divesting a company, business division or product line is a common M&A activity as companies seek to realign their portfolios, position themselves for future growth prospects and respond to market requirements. Project managing a divestment is a significant undertaking and can direct attention away from the running of everyday business operations – efficiency is therefore key.
In this webinar, Tom Allen and Justin Briody of Midaxo will discuss how to run a more efficient M&A divestment project in Midaxo. The webinar agenda covers:
- An overview of why taking an “analog” approach to project managing divestments is inefficient and why it makes sense to digitalize the process;
- A walk-through of how the Midaxo platform can be configured for a divestment use case – including: how to project manage potential buyers, NDAs and key deal documents within a centralized platform;
- How Midaxo removes the need for non-M&A specific tools and supports greater collaboration across teams;
- How Midaxo can be used by a seller to prepare for a divestment and become “sales-ready.”
Like proverbial sharks in the water, some 1,700 startups are circling auto industry incumbents. Emboldened by funding, shifting consumer tastes, compelling tech and the trail-blazing success of pioneers such as Tesla, this burgeoning auto-tech set is ready to make auto manufacturing, ownership, financing and servicing better, cheaper, faster and safer.