Home >Documents >8K Release Mergers & Acquisitions

8K Release Mergers & Acquisitions

Date post:23-Feb-2016
View:36 times
Download:0 times
Share this document with a friend
8K Release Mergers & Acquisitions. Kevin M Brett April 30, 2013. Let’s Make a Deal Friendly or Hostile. 1,896 mergers or acquisitions $471.5 billion Hewlett Packard/Compaq Disney/ABC ABC/ESPN AOL/ Time Warner Time/Warner Brothers Daimler Benz/Chrysler Budweiser/Corona. Why M&A?. - PowerPoint PPT Presentation

Lets Make a Deal

8K ReleaseMergers & AcquisitionsKevin M BrettApril 30, 2013

1,896 mergers or acquisitions$471.5 billionHewlett Packard/CompaqDisney/ABCABC/ESPNAOL/ Time WarnerTime/Warner BrothersDaimler Benz/ChryslerBudweiser/CoronaLets Make a DealFriendly or Hostile

Gain new technology and talentGrow RevenueStrategic AssetsMarket ShareSynergies

Why M&A?

I'm all for progress. It's change I object to. Mark TwainChange Resistant?

Approximately 70 percent of deals failInadequate Due DiligenceAcquiring companies blow integrationAcquired employees head for the exitsNeed to welcome acquired employees


Size of Deal?


How many are going to be laid off?

Is the deal accretive or dilutive to EPS?

Is there any product or customer overlap?

How will you integrate the two companies?

Anti-Trust Issues?

Will you report the deal on a Pro Forma basis?

Common Questions on Deals

Cash from Balance Sheet

Stock (1 for 1 or Ratio)

S4 (Issue More Stock)

LBO (Leveraged Buyout): Combo of Cash/Stock and Debt

Financing the Deal?Paying a Premium?

GAAP Greater or Equal Prominence to Pro Forma SEC Reg. G

GAAP: Generally Accepted Accounting Principles

Pro Forma, Non-GAAP or Earnings Before Special Items

Pro Forma: For The Sake of Form

Pro Forma: Results from Continuing Operations

GAAP vs. Pro FormaRevenues: $2 millionCOGS: $1 millionGross Margin: $1 millionSG&A: $250,000R&D: $250,000Amortization: $1 millionOperating Margin: ($500,000)Taxes: $200,000Net Loss: ($700,000)

GAAP: Q1 Income StatementMallard.com (DUCK: NASDAQ)

Revenues: $2 millionCOGS: $1 millionGross Margin: $1 millionSG&A: $250,000R&D: $250,000 Operating Margin: $500,000Taxes: $200,000Net Income (Loss): $300,000

Pro Forma: Q1 Income StatementMallard.com (DUCK: NASDAQ)

Writing the M&A Release (8K)Anheuser Busch, 39%

Miller Coors, 26%

Grupo Modelo, 7%

Heineken USA, 6%

Others, 22%DOJ Sues to Block $20.1 Billion BUD/Corona Merger

M&A (8K) Class Assignment

M&A (8K) Class Assignment

M&A (8K) Class Assignment

M&A (8K) Class Assignment

Class Assignment: Do Not TradeBoth companies announce definitive merger agreementEstablish the price of the dealAnnounce cash and/or stock financing (1 for 1)Accretive to acquiring companys EPS in one yearSubject to successful completion of Hart-Scott-Rodino and other closing conditionsQuotes from both CEOsBoth Boilerplates/One Safe HarborM&A News Release Guidelines

Popular Tags:

Click here to load reader

Embed Size (px)