Blog Entries tagged 'deals' Blog Entries tagged 'deals' Fri, 31 Dec 2010 19:40:30 +0100 FeedCreator 1.7.2 PE investing heating up

Private equity firms are the prowl for larger companies.

Armed with near-record dry powder, buyout specialists this year alone have completed 68 deals of at least $500 million, according to PitchBook. This is more than double the 26 deals exceeding $500 million in 2009, bringing the two-year total to 94.

PE firms plunked down nearly $78 billion of capital on the 68 deals.

"The bigger deals this year have been made possible by an increased availability of debt [...] Wed, 29 Dec 2010 23:00:00 +0100 private equity Preqin Pitchbook Deals Cash Capital Uncle Sam wants SMEs to export  

Persuading American companies to export is no easy task. For a start, America is the biggest market in the world and expanding overseas is perceived to make little material difference for most companies. Moreover, exports are risky: issues of non-payment, political risk and language barriers all raise the overall cost of business.

According to official government figures, only 1 percent of US companies actually export, even though 95 percent of the total global population lives o [...] Wed, 08 Dec 2010 23:00:00 +0100 Deals A new way to value M&A?

With US M&A still going strong both domestically and internationally, bias inherent in traditional valuation methods can lead to incorrect assumptions. Hence it is time to take a new approach to valuation. Or so say the authors of a new M&A methodology out in the Harvard Business Review.

Alexander van Putten— principal at Cameron & Associates and affiliate faculty member at the University of Pennsylvania's Wharton Business [...] Wed, 01 Dec 2010 23:00:00 +0100 valuation model mergers and acquisitions Finance Deals Governments making business easier  

Corporate executives are probably right in thinking that governments are the biggest impediment to their success. Pointless regulation, excessive taxation and now crippling debt burdens all conspire against successful performance.

This Monday, another country (Ireland) wakes up to a bailout that will see crushing austerity imposed on its people to pay for the rank financial incompetence of its political leaders. Companies, rightly, do not think much of governments right now.

< [...] Sun, 28 Nov 2010 23:00:00 +0100 Deals compliance
Caterpillar issues Yuan-denominated paper

China is slowing making inroads into another major market--debt underwriting.

Caterpillar said its financial services subsidiary raised about $150 million in a yuan (also known as renminbi) denominated medium term note. The issuance was conducted in Hong Kong and bought by institutional investors.

This is just the second non-financial multinational company to tap Hong Kong's yuan-denominated bond market.

Dow Jones points out that several banks have issued bon [...] Tue, 23 Nov 2010 23:00:00 +0100 yuan-denominated bond risk management Risk renminbi Hong Kong debt Deals China Did US companies save Ireland?


Ireland's €90 billion ($124 billion) financial rescue package was finally agreed upon Sunday night in Dublin and this morning (November 22) the markets are breathing a collective sigh of relief. The country will now begin the formal process of applying to the EU and IMF for the loans, although the details of much of the package have been pre-agreed.

Most importantly for Ireland's economic future is that its much vaunted 12.5 percent corporation tax will remain [...] Sun, 21 Nov 2010 23:00:00 +0100 Deals Corporate investment supporting UK growth


In its latest Monthly Business Conditions survey, the Bank of England reveals private sector companies in the UK have strong investment plans, for the first time since the onset of the crisis. According to the report, planned investment activity by private sector companies is higher than at any time in the last 12 months.

In particular, firms in the manufacturing and consumer services sectors were planning on increasing investment the most. But they were not planning on in [...] Wed, 17 Nov 2010 23:00:00 +0100 Deals Asian companies build up war chest

A new report by Moody's out today shows that companies in Asia have amassed $230 billion in cash over the past 18 months. According to the report, this amount will be used for expansion, liquidity and acquisitions.

While the total amount is less than the $1.2 trillion built up by US corporates, on a per company basis, Asian companies are hoarding twice as much cash as their US peers. And this sample does not include companies from Japan and Australia who have been doubly bles [...] Sat, 13 Nov 2010 23:00:00 +0100 Deals Cash Low spreads cause raft of corporate issuance

US companies are again taking advantage of low interest rates to issue debt and further build up coffers. The latest companies to join the march to the debt markets are Johnson & Johnson, Coca Cola and Wal-Mart, as the New York Times reported this week. They follow eBay, Microsoft and PepsiCo, who all came to market with low-coupon issues last month.

However, whether this will be used to fuel increased M&A or will simply sit on bal [...] Mon, 08 Nov 2010 23:00:00 +0100 Wal-Mart refinance eBay debt Deals Coca Cola Cash Metlife: the highs and lows of joining SWIFT

Since SWIFT opened its doors to companies, more than 700 have under gone the process and become members of what was a banks-only club. Metlife is one of the more recent converts and is evangelical in the benefits of becoming a member.

"We joined SWIFT as it makes the whole payments process much easier and we can lower our costs," says Adam Brack, treasury consultant at Metlife in who ran the project.

SWIFT is the Society for Worldwide Interbank Financial Telecommun [...] Tue, 02 Nov 2010 23:00:00 +0100 Deals Cash RANKINGS: Top PE law firms, advisors, lenders

Research firm Pitchbook has come out with its fourth quarter report, which reviews the prior three-month period.

In addition to pointing out that the buyout market continues to improve from the depths of the near depression, it also includes a few handy rankings for those seeking to do deals.

So, here they are.

Top 10 Law Firms in Private Equity*

Kirkland & Ellis

Jones Day

Weil Gotshal & Manges

Latham & Watkins

Mo [...] Wed, 27 Oct 2010 23:00:00 +0100 private equity lawyers investment banking Deals Following Goldman's 50-year bond

Say this for Goldman Sachs. It is hard to go wrong following the investment bank's lead.

Okay, so maybe they bet against their customers, as we learned from the credit default swaps case brought against the firm by the SEC earlier this year.

But, when it comes to making financial decisions, the venerable investment bank is among the savviest.

The most recent example: Earlier this week the bank sold $1.3 billion in 50-year bonds. It actually only had planned to [...] Tue, 26 Oct 2010 23:00:00 +0100 Goldman Sachs Deals Cash bonds Venture investments up 10 percent in 2010

Another source of funding for small businesses is coming back.

Venture investors pumped $5.5 billion into 662 deals for US-based companies during the third quarter of 2010, according to Dow Jones VentureSource.  This works out to a 5 percent decline in the value of the investments but a 2 percent increase in the number of deals from the same period last year.

The trends are even more impressive, however, if you look at the data for the first three quarters of the year [...] Sun, 24 Oct 2010 23:00:00 +0100 venture capital seed funding Dow Jones VentureSource Deals Cash angels Private equity investments at record levels

Private equity is coming back...sort of.

In the third quarter, total equity investment in PE transactions increased to a record $40.1 billion, up from $36.4 billion in the second quarter and $17.8 billion in the first quarter, according to the Private Equity Growth Capital Council.

Year-to-date global equity investment totaled $94 billion, also an all-time high. The previous record was $80 billion of equity invested in the first three quarters of 2007.

Dollar volume [...] Wed, 20 Oct 2010 23:00:00 +0100 Private Equity Growth Capital Council private equity M&A; dry powder Deals Small business loans safer than high-yield bonds, PayNet finds

In an article this week on Reuters, William Phelan, president and founder of PayNet, noted that small business loan default rates since 2006 were at about 6.9 percent—much lower than the 12.9 percent default rate that Moody’s Investors Service estimates for high-yield bonds.

Plus, data from PayNet—which provides small business credit history data and analytics for lenders—indicates that the small business default ra [...] Tue, 19 Oct 2010 23:00:00 +0100 small business lending small business Reuters PayNet Moody's Investors Service loans Deals Cash Small business gets boost from British banks

At the end of last week the British Banks Association set out 17 commitments to repair the damaged relationship between UK banks and their SME customers. Under three broad categories - improving customer relations, ensuring better access to finance and promoting better understanding - the commitments are equal part waffle and concrete. But they nevertheless show that banks in the UK are aware of the damage that they are doing themselves by restricting credit and cutting off the recovery [...] Sun, 17 Oct 2010 23:00:00 +0100 Deals Court makes hostile takeovers easier

Bad news for companies with staggered boards.

A recent Delaware Chancery Court ruling has made it easier for outsiders to crack a company's classified board structure. As a result, dissidents will be able to wrest control of a company's Board of Directors sooner than the target might have hoped.

The case involves a bylaw amendment adopted by Airgas shareholders at the company's September 2010 annual meeting that moves up the date of Airgas's 2011 annual meeti [...] Thu, 14 Oct 2010 23:00:00 +0100 staggered board hostile takeover Deals DavisPolk compliance classified board Careers/Management Court backs NOL poison pills

The Delaware Supreme Court  once again came to the defense of the poison pill. This time it addressed the use of a shareholder rights plan to protect valuable net operating loss carryforwards (NOLs).

"The decision reconfirms that directors need not passively face threats; instead, boards have the power to directly combat assaults on the corporation with bold and innovative action," said Wachtell Lipton Rosen & Katz, in a client alert.

Currently 61 c [...] Tue, 05 Oct 2010 23:00:00 +0100 shareholder rights plan poison pill NOLs net operating loss carryforwards Deals compliance Cash Retail CFOs: It's jobs, stupid

It's all about the jobs.

Add chief financial officers of retail firms to the long list of experts who believe the economy will continue to muddle along until the unemployment rate comes down.

In a recent survey with BDO USA, the finance execs said they don't expect a double-dip recession. However, nearly eight of 10 (78 percent) of retail CFOs said an ongoing economic turnaround is most dependent upon lower unemployment or consistent improvement in consumer confide [...] Sun, 03 Oct 2010 23:00:00 +0100 unemployment jobs Deals Challenger Gray & Christmas CFOs Cash Careers/Management BDO USA Venture deals rebounding sharply

Liquidity is clearly improving in the venture capital market, making it easier for investors to cash out their investments.

During the third quarter, there were 111 venture-capital backed company exits, netting $6.4 billion. The number of exits rose by 11 percent while deal volume surged 70 percent compared to the same quarter a year ago, according to Dow Jones VentureSource.

Breaking down the source of deal-making, 102 venture-backed companies exited via a merger, acquisi [...] Thu, 30 Sep 2010 23:00:00 +0100 venture capital private equity mergers and acquisitions M&A; IPO initial public offering Dow Jones VentureSource Deals