Recent years have seen significant exits from established companies,
representing learning opportunities for small businesses nationwide.
Whether through IPO or acquisition, exit planning continues to be a
significant need for all businesses large or small.
Just last year, there were 1,250 sales with a total exit volume of
$456 billion.
These exits represented a 22% increase in the number of buyout exits in North America as well as
16% in Europe.
Many of these companies required extensive planning to get to their exit, with 60% of assets held for
more than five years.
To help you see how others have succeeded in successfully exiting their companies, we have gathered some of the most successful (and
interesting) company exits including the largest merger and acquisitions deals of the past few years.
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Altera
Intel acquired Altera, the company’s largest acquisition in it’s history.
• Deal Value: $16.59 billion
• Sector: Technology
Kinder Morgan Inc.’s acquisition of El Paso Pipeline Partners represented the largest energy transaction in history, now becoming the largest midstream energy company in the U.S. because of the deal.
Deal Value: $76 billionSector: Energy
El Paso Pipeline Partners
NXP Semiconductors acquired Freescale Semiconductor, representing significant consolidation within the space and a comprised value of over $40 billion.
Deal Value: $40 billionDeal Value excluding debt: $11.78 billionSector: Technology
Freescale Semiconductor
Pfizer announced plans to acquire Hospira, resulting in an estimated cost savings of $800 million per year by 2018.
Deal Value: $17.15 billionDeal Value excluding debt: $15.93 billionSector: Healthcare
Hospira
AbbVie acquired Pharmacyclics giving it rights to 50% of Imbruvica’s revenue. Pharmacyclics is a cancer drug maker.
Deal Value: $20.99 billionSector: Healthcare
Pharmacyclics
Mylan offered an acquisition for Perrigo at bids of $205 per share.
Deal Value: $35.3 billion (pending)Deal Value excluding debt: $34.11 billionSector: Healthcare
Perrigo
Avago Technologies agreed to purchase Broadcom for $37 billion, valuing the combined company at $77 billion in enterprise value.
Deal Value: $17.15 billionDeal Value excluding debt: $15.93 billionSector: Technology
Broadcom
H.J. Heinz and Kraft Foods Group created the world’s fifth largest food company with revenues of $28 billion.
Deal Value: $45.44 billionDeal Value excluding debt: $36.7 billionSector: Food and Beverage
Kraft
Teva made a takeover offer of Mylan, even admist Mylan pending takeover of Perrigo. If Teva aquires Mylan, it would become the leading generic-drug company with more than $30 billion in annual sales.
Deal Value: $50.97 billionDeal Value excluding debt: $42.97 billionSector: Healthcare
Mylan
Charter secured both the acquisition of both Time Warner Cable as well as a subsequent acquisition of Bright House Networks for $10.4 billion. The acquisition represents 23.9 million customers in 41 states.
Deal Value: $79.59 billionDeal Value excluding debt: $56.8 billionSector: Telecom
Time Warner Cable
Reynolds American, Inc. acquisition of Lorillard Inc. represented one of the largest M&A activity within the Tobacco space.
Deal Value: $27 billionSector: Tobacco
Lorillard Inc.
Novartis AG agreed to restructure over $20 billion in assets with Glaxo Smith Kline, combining their over-thecounter and consumer drug business. Novartis bought Glaxo Smith Kline’s cancer drug business.
Deal Value: $20 billionSector: Pharmaceuticals
Glaxo Smith Kline
Facebook acquired WhatsApp, representing the largest purchase of a venture capital backed firm, effectively eliminating Twitter’s competitive advantage.
Deal Value: $22 billionSector: Tech
Actavis’ purchase of Forest Laboratories, acquiring a portfolio of various medications.
Deal Value: $25 billionSector: Pharmacueticals
Forest Laboratories
Haliburton Company’s acquisition of Baker Hughes Incorporated potential acquisition represents a significant consolidation within the energy sector.
Deal Value: $35 billionSector: Energy
Baker Hughes Incorporated
Medtronic, Inc acquisition of Covidien represents an addition of a portfolio of hospital supplies allowing Medtronic to compete with Johnson & Johnson.
Deal Value: $43 billionSector: Healthcare
Covidien
Actavis and Allergen represents a deal of various practices including ophthalmology, neurosciences, dermatology, and gastroentroenterology.
Deal Value: $66 billionSector: Healthcare
Allergan
AT&T’s acquisition of DirecTV for $48.9 billion in cash representing significant consolidation within the pace.
Deal Value: $67 billionSector: Telecom
DirecTV
Comcast’s offer for TimeWarner Cable would combine the two largest cable operators within the United States. Deal Value: $70 billionSector: Telecom
Time Warner Cable
1. Restructure and change organizational growth
2. Increase market share
3. Obtaining new products
4. Gaining entrance into new markets
5. Gaining intellectual property
These were the most common elements we saw amongst these “killer” exits and reason why companies looked to merge / acquire:
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