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Trends in M&A - June 2010
Trends in M&A - June 2010
Trends in M&A - June 2010
Trends in M&A - June 2010
Trends in M&A - June 2010
Trends in M&A - June 2010
Trends in M&A - June 2010
Trends in M&A - June 2010
Trends in M&A - June 2010
Trends in M&A - June 2010
Trends in M&A - June 2010
Trends in M&A - June 2010
Trends in M&A - June 2010
Trends in M&A - June 2010
Trends in M&A - June 2010
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Trends in M&A - June 2010

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Global Finance magazine in association with Merrill DataSite® presents the video webcast on Trends in Mergers and Acquisitions, which took place the Thursday, June 3rd at 11:00 a.m

Global Finance magazine in association with Merrill DataSite® presents the video webcast on Trends in Mergers and Acquisitions, which took place the Thursday, June 3rd at 11:00 a.m

Published in: Economy & Finance
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  • 1. Trends in M&A A GLOBAL FINANCE LIVE VIDEO WEBCAST
  • 2. TOPICS 1) Opportunities and challenges in today’s M&A market 2) Best practices 3) Managing transaction costs
  • 3. SPEAKERS • Chris Ruggeri, principal, Deloitte Financial Advisory Services • Allen Miller, head of Corporate Department, Chadbourne and Park • Daniel Barclay, head of Canadian M&A, BMO Capital Markets
  • 4. Global M&A Activity Summary Deal Volume (US$Bn) Number of Deals Source: SDC 4
  • 5. Global Cross Border M&A Activity % of Global M&A Activity Deal Volume (US$Bn) Source: TSX Review, SDC 5
  • 6. Global M&A Transaction Size 100% 90% 21.2% 23.6% 26.8% 24.6% 24.8% 80% 70% 60% 35.7% 43.2% 37.6% 36.4% 38.8% 50% 40% 11.2% 10.1% 9.5% 30% 10.6% 11.6% 20% 19.4% 18.3% 19.3% 16.3% 16.6% 10% 7.5% 7.5% 10.2% 10.1% 9.4% 0% 2006 2007 2008 2009 2010 Less Than $100MM $100MM-$500MM $500MM-$1Bn $1Bn-$10Bn Over $10Bn Source: SDC 6
  • 7. Top 50 Deals in 2009 by Industry Technology Mining 2% 3% Other Utilities 4% 4% Healthcare 21% Transportation 6% Food & Beverage 6% Financial Services Media & 20% Communications 9% Automotive 10% Energy 15% Total Top 50 Deals: $624Bn Source: Bloomberg 7
  • 8. North American Offer Considerations Source: S&P 8
  • 9. Cumulative Uninvested P/E Capital Capital (US$Bn) Sources: S&P 9
  • 10. M&A in Today’s Market A recent Deloitte survey of over 160 corporate development executives showed that they see an effective M&A effort as: •A competitive differentiator •An accelerant of corporate growth and expansion •A way to evolve their skill sets, especially in the international arena
  • 11. Where Are the Best Opportunities? 2010 GDP Growth Estimates Asia CIS Middle East Latin America US Euro Area 0 1 2 3 4 5 6 7 8 9 Source: Peterson Institute for International Economics (as of April 2010) 11
  • 12. Best Practices Beyond execution – using new tools both before and after the deal: • Knowledge management • Playbooks • Training •Standardized analytics • Discounted cash flow– plus decision analysis, probabilistic modeling • Not just measuring value but gaining insight • More advanced technology • Process optimization • Strategic flexibility • Accountability for integration and deal success 12 Copyright © 2010 Deloitte Development LLC. All rights reserved.
  • 13. Most Important Skills for Effective M&A Top 5 ranked, with 1 being most important Deal team experience and training 1 2 3 4 5 Ability to assess value and risk 1 2 3 4 5 Ability to effectively generate deal flow and targets 1 2 3 4 5 Coordinated and efficient process 1 2 3 4 5 Negotiation skills 1 2 3 4 5 Post-merger integration 1 2 3 4 5 Ability to identify synergies 1 2 3 4 5 Ability at courting targets 1 2 3 4 5 Ability to capture synergies 1 2 3 4 5 Speed in closing deals 1 2 3 4 5 0 20 40 60 80 100 120 140 13 Copyright © 2010 Deloitte Development LLC. All rights reserved.
  • 14. Deal Process Best Practices • Use RFPs as education tool • Ask advisors to conduct background checks • Know and reconcile disclosure obligations in relevant jurisdictions • Review deal structure from multiple perspectives • Do not assume best case scenario 14
  • 15. Managing Transaction Costs • Availability of in-house resources Cost • Deal complexity • Schedule • Risk management 15

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