Your SlideShare is downloading. ×
0
Giora Yaron  M&A To Be Or Not To Be
Giora Yaron  M&A To Be Or Not To Be
Giora Yaron  M&A To Be Or Not To Be
Giora Yaron  M&A To Be Or Not To Be
Giora Yaron  M&A To Be Or Not To Be
Giora Yaron  M&A To Be Or Not To Be
Giora Yaron  M&A To Be Or Not To Be
Giora Yaron  M&A To Be Or Not To Be
Giora Yaron  M&A To Be Or Not To Be
Giora Yaron  M&A To Be Or Not To Be
Giora Yaron  M&A To Be Or Not To Be
Giora Yaron  M&A To Be Or Not To Be
Giora Yaron  M&A To Be Or Not To Be
Giora Yaron  M&A To Be Or Not To Be
Giora Yaron  M&A To Be Or Not To Be
Giora Yaron  M&A To Be Or Not To Be
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Giora Yaron M&A To Be Or Not To Be

552

Published on

The Big Boys Playground 12.7.2011

The Big Boys Playground 12.7.2011

Published in: Technology, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
552
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. M&A“TO BE OR NOT TO BE?” Dr. Giora Yaron
  • 2. M&A Experience base Comsys I; Sold to Conexant 1996 Pentacom; Sold to Cisco, 1999 P-cube; Sold to Cisco 2004 Mercury; Sold to HP 2006 Qumranet; Sold to RedHat 2009 2
  • 3. M&A Key consideration;Maximizing Share Holders Value Breadth of product portfolio Competitive landscape Market segment Maturing? Exploding? [Scitex/Creo/Kodak] Disruptive technology emerges [Kodak films, Galileo/Marvell] Founders desire 3
  • 4. THE EMOTIONAL QUESTION Do I want to sell or take it all the way? 4
  • 5. THE TWO SIDES OF M&AAcquirer view Defensive; control product transition (Rockwell/Comsys) Catch-up strategy; “On the fly fix” for a strategic miss (Cisco/P-cube, Qumranet/RedHat) Strategic response to deliver 1+1>2 (HP/Mercury)Seller view Defensive; competitive new technologies, market changes [Rockwell/Comsys, Cisco/P-cube, Qumranet/RedHat] Quick liquidity 5
  • 6. ACQUIRER VIEW; DEFENSE PLAY [ROCKWELL/COMSYS] CPU processing power increases HW enhanced instructions can be done in SW No need for HW modem Rockwell market leader (70% market share) in HW modems. Comsys technology threatens hundreds of millions of Rockwell revenueRockwell acquires Comsys to control market transition 6
  • 7. CATCH-UP STRATEGY; CISCO/P-CUBE P-cube develops Deep Packet Inspection [DPI] for next generation networking systems P2P takes the market by a storm Cisco has a hole in its product offeringCisco acquires P-cube to meet market need “on the fly” 7
  • 8. CATCH-UP STRATEGY; REDHAT/QUMRANET Qumranet develops Hypervisor for Linux RedHat market leader for Linux has no virtualization strategy The compute world is going vitrualRedHat acquires Qumranet for its KVM Hypervisor 8
  • 9. STRATEGIC MOVE;1+1>2 (HP/MERCURY)HP Openview has wide acceptance inthe data center mgt market, butcompeting hard against IBM TivoliMercury “owns” BTO market(performance analysis infrastructureand application) HP acquires Mercury; 1+1>2 9
  • 10. BIG COMPANY; UNIQUE CONSIDERATIONS Breaking the $1B revenue barrier Customers pushing for “end to end” solution Must increase number of deals at the $10m- $25m level Must go global rather than national Must develop global support infrastructure Must develop global IT infrastructureConclusion; Expend via acquisitions or be acquired 10
  • 11. “VALIDATION POINT” Mercury sold to HPStock shoots overnight from $34 to $52!! Largest acquisition in the history of the country!!! 11
  • 12. Considerations to insure successful M&A Considerations Strategic fit Product portfolio fit Company DNA Case studies Conexant/Comsys Cisco/P-cube HP/Mercury RedHat/Qumranet 12
  • 13. VALUATION DEFLECTION POINTS Technology feasibility; up to $100m (Pentacom, Qumranet) Market traction; up to $250m (P-cube) Customer base; up to billions (Mercury) 13
  • 14. ALL THE WAY VS. M&A THE ISRAELI PERSPECTIVE Historically had no mgt infrastructure to go all the way; No more!! Historically US lead innovation in all technology segments; No more!! Historically US market were first to adopt new technology; No more!! Today more than ever before IsraeliBased companies can go “all the way” 14
  • 15. 15
  • 16. THANK YOU! 16

×