The document discusses the outlook for M&A activity in the US in 2008. It notes that deal activity is likely to decline overall as financial buyers face higher costs of capital and challenges financing deals. Strategic buyers may see reduced competition from financial buyers but also have increased risk aversion. Transaction structures are likely to change, with more joint bids and equity components. Board and shareholder dynamics around activism and hostile bids may also evolve in the new environment.
The document provides an economic update from the Federal Reserve Bank of Philadelphia. It includes:
1) A summary of FOMC forecasts for real GDP growth, unemployment rates, and inflation rates for 2012-2014 which generally predict moderate economic growth and contained inflation.
2) Data and charts on components of the economy such as consumption, investment, manufacturing, and lending which show recent trends and fluctuations.
3) The Philadelphia Fed's current and leading economic activity indexes for April 2012 which indicate differing growth predictions across regions in the next 6 months.
This document provides a tutorial on financial ratios used to analyze companies. It discusses several types of ratios:
1. Liquidity ratios like the current ratio, quick ratio, and cash ratio which measure a company's ability to meet short-term obligations. The cash conversion cycle is also introduced which measures the time between expenditure for inventory and collection from customers.
2. Profitability, debt, operating performance, cash flow, and investment valuation ratios are also outlined.
3. Examples are provided for each ratio using financial data from Zimmer Holdings, with the current ratio, quick ratio, and cash ratio being explained in more detail to illustrate how they are calculated and interpreted.
In 3 sentences:
BGC Partners reported their financial results for 4Q2012 compared to 4Q2011. Total revenue was $1.1 billion, down 1% from the previous year. Revenue from rates, credit, and equities declined due to lower industry volumes and quantitative easing, though foreign exchange revenue grew due to strong performance in electronic trading. Overall pre-tax earnings were $35.1 million in financial services and $12.6 million in real estate.
Presentation for Consumer Goods TechnologyLora Cecere
The document discusses trends in supply chain management and performance metrics over recent decades. It analyzes how inventory levels, revenue per employee, and commodity price volatility have changed over time for various industries. Additionally, it explores the growth of mobile and social media and new approaches to collaboration between companies and their supply chains.
Presentation at the ASAE Annual Meeting 2010 at the AMC Pre-Con event. LoBue presents findings of his comparative studies, examining the performance of associations managed by AMCs vs. direct staff hired model (standalone).
The document provides an overview of an LBO transaction including sources and uses of funds, transaction assumptions, operating projections, and financial analysis. Key details include:
- Equity value of $132.9 million, with $74.5 million in new equity financing and $34.8 million in senior debt financing.
- Projected EBITDA of $17.4 million in 2008 growing to $25.9 million by 2013.
- Implied equity IRR ranges from 8.7-28.5% depending on exit multiple assumptions from 2011-2013.
- Goodwill of $47.1 million allocated between intangible assets ($9.4 million) and remaining good
The analyst is downgrading Bank of America (BAC) stock from Outperform to Neutral based primarily on valuation. At its current price of $11.98 per share, BAC appears overvalued relative to the company's near-term financial performance and prospects for expense improvement. For the stock to be attractive at current levels, BAC would need to achieve a 5 percentage point greater improvement in efficiency than estimated, which may be difficult to achieve until 2015 given legacy costs. While BAC announced mortgage servicing sales, full expense savings will not be realized until 2014. Overall, at 11 times projected 2013 earnings, BAC shares appear to be discounting faster cost improvements than analysts expect.
Northern Trust Global Investments held an Investor Day in 2008 to outline its strategic priorities and growth opportunities. NTGIs key strategies are to serve personal and institutional clients through quantitative, manager of managers, and fixed income investments while building the business globally and delivering investment excellence. NTGIs assets under management have grown strongly to $778.6 billion as of March 2008 across asset classes, client segments, and investment styles including active, quantitative, and manager of managers approaches. NTGIs growth will be led by client specific solutions and expanding capabilities in both the personal and institutional markets globally.
The document provides an economic update from the Federal Reserve Bank of Philadelphia. It includes:
1) A summary of FOMC forecasts for real GDP growth, unemployment rates, and inflation rates for 2012-2014 which generally predict moderate economic growth and contained inflation.
2) Data and charts on components of the economy such as consumption, investment, manufacturing, and lending which show recent trends and fluctuations.
3) The Philadelphia Fed's current and leading economic activity indexes for April 2012 which indicate differing growth predictions across regions in the next 6 months.
This document provides a tutorial on financial ratios used to analyze companies. It discusses several types of ratios:
1. Liquidity ratios like the current ratio, quick ratio, and cash ratio which measure a company's ability to meet short-term obligations. The cash conversion cycle is also introduced which measures the time between expenditure for inventory and collection from customers.
2. Profitability, debt, operating performance, cash flow, and investment valuation ratios are also outlined.
3. Examples are provided for each ratio using financial data from Zimmer Holdings, with the current ratio, quick ratio, and cash ratio being explained in more detail to illustrate how they are calculated and interpreted.
In 3 sentences:
BGC Partners reported their financial results for 4Q2012 compared to 4Q2011. Total revenue was $1.1 billion, down 1% from the previous year. Revenue from rates, credit, and equities declined due to lower industry volumes and quantitative easing, though foreign exchange revenue grew due to strong performance in electronic trading. Overall pre-tax earnings were $35.1 million in financial services and $12.6 million in real estate.
Presentation for Consumer Goods TechnologyLora Cecere
The document discusses trends in supply chain management and performance metrics over recent decades. It analyzes how inventory levels, revenue per employee, and commodity price volatility have changed over time for various industries. Additionally, it explores the growth of mobile and social media and new approaches to collaboration between companies and their supply chains.
Presentation at the ASAE Annual Meeting 2010 at the AMC Pre-Con event. LoBue presents findings of his comparative studies, examining the performance of associations managed by AMCs vs. direct staff hired model (standalone).
The document provides an overview of an LBO transaction including sources and uses of funds, transaction assumptions, operating projections, and financial analysis. Key details include:
- Equity value of $132.9 million, with $74.5 million in new equity financing and $34.8 million in senior debt financing.
- Projected EBITDA of $17.4 million in 2008 growing to $25.9 million by 2013.
- Implied equity IRR ranges from 8.7-28.5% depending on exit multiple assumptions from 2011-2013.
- Goodwill of $47.1 million allocated between intangible assets ($9.4 million) and remaining good
The analyst is downgrading Bank of America (BAC) stock from Outperform to Neutral based primarily on valuation. At its current price of $11.98 per share, BAC appears overvalued relative to the company's near-term financial performance and prospects for expense improvement. For the stock to be attractive at current levels, BAC would need to achieve a 5 percentage point greater improvement in efficiency than estimated, which may be difficult to achieve until 2015 given legacy costs. While BAC announced mortgage servicing sales, full expense savings will not be realized until 2014. Overall, at 11 times projected 2013 earnings, BAC shares appear to be discounting faster cost improvements than analysts expect.
Northern Trust Global Investments held an Investor Day in 2008 to outline its strategic priorities and growth opportunities. NTGIs key strategies are to serve personal and institutional clients through quantitative, manager of managers, and fixed income investments while building the business globally and delivering investment excellence. NTGIs assets under management have grown strongly to $778.6 billion as of March 2008 across asset classes, client segments, and investment styles including active, quantitative, and manager of managers approaches. NTGIs growth will be led by client specific solutions and expanding capabilities in both the personal and institutional markets globally.
For over 60 years Mediobanca has helped its client grow, with high-quality advisory services and a complete range of credit solutions, from the simplest and most traditional products to the most sophisticated solutions available on capital markets.
Today Mediobanca is a banking group which employs 3,800 people and is:
• leader in investment banking in Italy
• among the first-ranking consumer credit operators in Italy, with Compass Banca
• among the leading domestic online banks, with CheBanca
This document discusses GAEO, a web framework for developing applications on Google App Engine. It summarizes GAEO's model-view-controller architecture and how it handles common tasks like routing, accessing request parameters, sessions and cookies. It also covers how to extend GAEO through plugins and includes contact information for the GAEO community.
This document summarizes a presentation in Chinese about GAEO, a web framework for Google App Engine. It discusses features like models, controllers, routing, templates, sessions, cookies, and plugins. It encourages using GAEO for GAE projects due to its simplicity compared to other options. Development of GAEO and plugins is welcomed to improve it.
The document discusses the benefits of exercise for both physical and mental health. Regular exercise can improve cardiovascular health, reduce symptoms of depression and anxiety, enhance mood, and boost brain function. Staying physically active helps fight diseases and conditions, increases energy levels, and promotes better quality of life.
Finance Society Introduction to Finance Workshop (09.22.2011)finclub
This document provides an introduction to various finance topics including the time value of money, discount rates, valuation, accounting, and Wall Street. It discusses how the time value of money means a dollar today is not equal to a dollar in the future. Discount rates are used to discount cash flows and are determined by models like the Capital Asset Pricing Model. Valuation methods like comparable company analysis and discounted cash flow analysis are used to determine the fair value of companies. The three financial statements are also introduced along with how Wall Street functions between the buy side and sell side.
The document discusses web scraping using examples. It covers accessing the desired data page, understanding the page structure to find the needed data, retrieving the data, getting remaining needed data, and presenting the scraped data on a basic web page. It then discusses enhancing the data visualization with JavaScript libraries and charts.
This document is a confidential report from Lazard analyzing the levelized cost of energy for various electricity generation technologies. It finds that some alternative energy technologies like utility-scale solar PV and onshore wind are now cost-competitive with conventional generation technologies without subsidies. However, federal tax subsidies still provide an important cost reduction for many alternative technologies. The costs of different technologies vary significantly depending on location and circumstances. The report provides a detailed breakdown of the assumptions and cost components considered in Lazard's analysis.
The panel of experts comprised of a senior corporate lawyer, an international tax expert, a litigator and arbitration expert, and senior investment bankers will discuss
the outlook, deal structures, financing and execution, as well as dispute prevention and resolution in Emerging Markets Cross-Border Transactions.
Major Topics:
The global outlook for cross-border investment and M&A activity in the emerging markets
Legal risks particular to investments in emerging markets; specifically in technology and natural resources
Types and indicia of risk
Transaction objectives and structures
Dispute resolution mechanisms
Economic risks particular to cross-border and emerging market investments
Raising capital for cross border investment and M&A: explaining the risks to potential investors
Successful deal execution
Cultural considerations
Case studies
- Perrier, the world's largest mineral water company, is facing financial difficulties due to a benzene scandal, making it vulnerable to takeover bids.
- The Agnelli family sees an opportunity to take over Perrier indirectly through companies they control like Exor and Saint Louis.
- Nestle contests the Agnelli family's bid, also hoping to acquire Perrier, with the support of allies like BSN.
- The outcome of Nestle's lawsuits against Exor and Saint Louis' stakes in Perrier will influence whether the Agnelli family or Nestle gains control of Perrier.
The annual shareholder meeting presentation covered the following key points in 3 sentences:
Terex aims to achieve $12 billion in sales and 12% operating margin by 2010 through executing on supply chain management, pricing discipline, and lean initiatives to improve margins. The company has a diverse portfolio of products and geographic presence to balance performance across economic cycles. Opportunities for margin improvement include coordinating supply efforts, optimizing manufacturing footprint, and pricing actions to offset rising costs.
Remarks by Robert L. Reynolds, President and Chief Executive Officer, Putnam InvestmentsFinancial Advisor/Private Wealth Innovative Retirement SymposiumOrlando, Florida, March 12, 2013
One reason I was pleased to be invited is that Financial Advisor’s slogan, “Knowledge for the Sophisticated Investor,” echoes the core themes I want to talk with you about today. I believe that there is a crying need — among asset managers, advisors, and investors — for new thinking and new solutions.
Abraham Lincoln’s great adage “As our case is new, so we must think anew and act anew” has never been more relevant. Five years after the worst economic crisis to hit global capitalism in our lifetimes, we are still feeling the aftershocks. We find ourselves moving ever so tentatively into a financial future about which the only thing we seem sure of is that it will likely be very different than the investment world we all grew up with.
Core topics
To me, this suggests that the conventional wisdoms shaped by decades of high-return investing — first in equities from 1982 to 2000, then in fixed-income markets over most of this young century — need to be re-examined, revised, or even scrapped.
And while I certainly don’t claim to have all the answers, I do want to sketch some of the new solution-oriented approaches that Putnam sees emerging, such as innovative investment strategies, changed views on portfolio construction, greater risk-awareness, and advances in practice management, including new technologies to enable advisors to reach and influence clients.
I would also like to suggest three retirement policy innovations that the financial services industry should take the lead on — now.
Patrick D. Campbell, Senior Vice President and CFOfinance10
The document provides an agenda for a two-day 3M investor conference. Day one includes presentations from several senior vice presidents on topics like financial results, health care business, and safety services. There will be product displays and tours of the 3M Innovation Center. Day two includes presentations on supply chain operations and tours of a pilot plant and main Hutchinson manufacturing plant. The document also provides forward-looking statements about 3M's financial projections and discloses risk factors that could affect results.
Terex Corporation provides forward-looking statements and non-GAAP measures in their presentation. Their purpose is to improve people's lives around the world through their construction equipment. Their mission is to delight customers with high-quality products and services that exceed expectations. Their vision is to be the most customer-responsive, profitable, and desirable place for employees to work in the industry. Terex has a strong and diversified revenue base globally, with income and sales growing significantly in recent years. They are the 3rd largest construction equipment manufacturer in the world, with over 75% of sales where they have a strong market presence.
Terex Corporation provides forward-looking statements and non-GAAP measures in their presentation. Their purpose is to improve people's lives around the world through their construction equipment. Their mission is to delight customers with high-quality products and services that exceed expectations. Their vision is to be the most customer-responsive, profitable, and desirable place for employees to work in the industry. Terex has a strong and diversified revenue base globally, with income and sales growing substantially in recent years. They are the third largest construction equipment manufacturer in the world, with over 75% of sales where they have a strong market presence.
Bank of America Merrill Lynch 2012 Global MetalsRoyalGold
This presentation discusses a world class royalty company. It highlights the company's strong financial position with growing revenues, an efficient business model, and increasing reserves. The company's cornerstone assets are positioned for significant near term growth. However, the presentation also contains cautionary statements regarding various risks and uncertainties that could impact projections.
Terex is a leading manufacturer of construction and mining equipment with sales of $9.1 billion in 2007. It aims to grow sales to $12 billion by 2010 through organic growth and acquisitions while improving operating margins to 12% and reducing working capital to sales ratio to 15%. Terex has a diversified business across products and geographies that provides balance throughout the economic cycle.
Terex is a leading manufacturer of construction and mining equipment with strong market positions. It aims to grow sales to $12 billion by 2010 through executing on initiatives to improve supply chain management, pricing discipline, and productivity. Terex has a diversified business across products and geographies to balance performance through different economic cycles.
TaskRabbit, Inc. - Venture Capital Financing Deal Terms & ValuationsVC Experts, Inc.
Deal Terms, Pricing, and Valuations of the latest financing rounds for TaskRabbit, Inc. Similar data on thousands of private companies is available in the Valuation & Deal Term Database at http://vcexperts.com.
For over 60 years Mediobanca has helped its client grow, with high-quality advisory services and a complete range of credit solutions, from the simplest and most traditional products to the most sophisticated solutions available on capital markets.
Today Mediobanca is a banking group which employs 3,800 people and is:
• leader in investment banking in Italy
• among the first-ranking consumer credit operators in Italy, with Compass Banca
• among the leading domestic online banks, with CheBanca
This document discusses GAEO, a web framework for developing applications on Google App Engine. It summarizes GAEO's model-view-controller architecture and how it handles common tasks like routing, accessing request parameters, sessions and cookies. It also covers how to extend GAEO through plugins and includes contact information for the GAEO community.
This document summarizes a presentation in Chinese about GAEO, a web framework for Google App Engine. It discusses features like models, controllers, routing, templates, sessions, cookies, and plugins. It encourages using GAEO for GAE projects due to its simplicity compared to other options. Development of GAEO and plugins is welcomed to improve it.
The document discusses the benefits of exercise for both physical and mental health. Regular exercise can improve cardiovascular health, reduce symptoms of depression and anxiety, enhance mood, and boost brain function. Staying physically active helps fight diseases and conditions, increases energy levels, and promotes better quality of life.
Finance Society Introduction to Finance Workshop (09.22.2011)finclub
This document provides an introduction to various finance topics including the time value of money, discount rates, valuation, accounting, and Wall Street. It discusses how the time value of money means a dollar today is not equal to a dollar in the future. Discount rates are used to discount cash flows and are determined by models like the Capital Asset Pricing Model. Valuation methods like comparable company analysis and discounted cash flow analysis are used to determine the fair value of companies. The three financial statements are also introduced along with how Wall Street functions between the buy side and sell side.
The document discusses web scraping using examples. It covers accessing the desired data page, understanding the page structure to find the needed data, retrieving the data, getting remaining needed data, and presenting the scraped data on a basic web page. It then discusses enhancing the data visualization with JavaScript libraries and charts.
This document is a confidential report from Lazard analyzing the levelized cost of energy for various electricity generation technologies. It finds that some alternative energy technologies like utility-scale solar PV and onshore wind are now cost-competitive with conventional generation technologies without subsidies. However, federal tax subsidies still provide an important cost reduction for many alternative technologies. The costs of different technologies vary significantly depending on location and circumstances. The report provides a detailed breakdown of the assumptions and cost components considered in Lazard's analysis.
The panel of experts comprised of a senior corporate lawyer, an international tax expert, a litigator and arbitration expert, and senior investment bankers will discuss
the outlook, deal structures, financing and execution, as well as dispute prevention and resolution in Emerging Markets Cross-Border Transactions.
Major Topics:
The global outlook for cross-border investment and M&A activity in the emerging markets
Legal risks particular to investments in emerging markets; specifically in technology and natural resources
Types and indicia of risk
Transaction objectives and structures
Dispute resolution mechanisms
Economic risks particular to cross-border and emerging market investments
Raising capital for cross border investment and M&A: explaining the risks to potential investors
Successful deal execution
Cultural considerations
Case studies
- Perrier, the world's largest mineral water company, is facing financial difficulties due to a benzene scandal, making it vulnerable to takeover bids.
- The Agnelli family sees an opportunity to take over Perrier indirectly through companies they control like Exor and Saint Louis.
- Nestle contests the Agnelli family's bid, also hoping to acquire Perrier, with the support of allies like BSN.
- The outcome of Nestle's lawsuits against Exor and Saint Louis' stakes in Perrier will influence whether the Agnelli family or Nestle gains control of Perrier.
The annual shareholder meeting presentation covered the following key points in 3 sentences:
Terex aims to achieve $12 billion in sales and 12% operating margin by 2010 through executing on supply chain management, pricing discipline, and lean initiatives to improve margins. The company has a diverse portfolio of products and geographic presence to balance performance across economic cycles. Opportunities for margin improvement include coordinating supply efforts, optimizing manufacturing footprint, and pricing actions to offset rising costs.
Remarks by Robert L. Reynolds, President and Chief Executive Officer, Putnam InvestmentsFinancial Advisor/Private Wealth Innovative Retirement SymposiumOrlando, Florida, March 12, 2013
One reason I was pleased to be invited is that Financial Advisor’s slogan, “Knowledge for the Sophisticated Investor,” echoes the core themes I want to talk with you about today. I believe that there is a crying need — among asset managers, advisors, and investors — for new thinking and new solutions.
Abraham Lincoln’s great adage “As our case is new, so we must think anew and act anew” has never been more relevant. Five years after the worst economic crisis to hit global capitalism in our lifetimes, we are still feeling the aftershocks. We find ourselves moving ever so tentatively into a financial future about which the only thing we seem sure of is that it will likely be very different than the investment world we all grew up with.
Core topics
To me, this suggests that the conventional wisdoms shaped by decades of high-return investing — first in equities from 1982 to 2000, then in fixed-income markets over most of this young century — need to be re-examined, revised, or even scrapped.
And while I certainly don’t claim to have all the answers, I do want to sketch some of the new solution-oriented approaches that Putnam sees emerging, such as innovative investment strategies, changed views on portfolio construction, greater risk-awareness, and advances in practice management, including new technologies to enable advisors to reach and influence clients.
I would also like to suggest three retirement policy innovations that the financial services industry should take the lead on — now.
Patrick D. Campbell, Senior Vice President and CFOfinance10
The document provides an agenda for a two-day 3M investor conference. Day one includes presentations from several senior vice presidents on topics like financial results, health care business, and safety services. There will be product displays and tours of the 3M Innovation Center. Day two includes presentations on supply chain operations and tours of a pilot plant and main Hutchinson manufacturing plant. The document also provides forward-looking statements about 3M's financial projections and discloses risk factors that could affect results.
Terex Corporation provides forward-looking statements and non-GAAP measures in their presentation. Their purpose is to improve people's lives around the world through their construction equipment. Their mission is to delight customers with high-quality products and services that exceed expectations. Their vision is to be the most customer-responsive, profitable, and desirable place for employees to work in the industry. Terex has a strong and diversified revenue base globally, with income and sales growing significantly in recent years. They are the 3rd largest construction equipment manufacturer in the world, with over 75% of sales where they have a strong market presence.
Terex Corporation provides forward-looking statements and non-GAAP measures in their presentation. Their purpose is to improve people's lives around the world through their construction equipment. Their mission is to delight customers with high-quality products and services that exceed expectations. Their vision is to be the most customer-responsive, profitable, and desirable place for employees to work in the industry. Terex has a strong and diversified revenue base globally, with income and sales growing substantially in recent years. They are the third largest construction equipment manufacturer in the world, with over 75% of sales where they have a strong market presence.
Bank of America Merrill Lynch 2012 Global MetalsRoyalGold
This presentation discusses a world class royalty company. It highlights the company's strong financial position with growing revenues, an efficient business model, and increasing reserves. The company's cornerstone assets are positioned for significant near term growth. However, the presentation also contains cautionary statements regarding various risks and uncertainties that could impact projections.
Terex is a leading manufacturer of construction and mining equipment with sales of $9.1 billion in 2007. It aims to grow sales to $12 billion by 2010 through organic growth and acquisitions while improving operating margins to 12% and reducing working capital to sales ratio to 15%. Terex has a diversified business across products and geographies that provides balance throughout the economic cycle.
Terex is a leading manufacturer of construction and mining equipment with strong market positions. It aims to grow sales to $12 billion by 2010 through executing on initiatives to improve supply chain management, pricing discipline, and productivity. Terex has a diversified business across products and geographies to balance performance through different economic cycles.
TaskRabbit, Inc. - Venture Capital Financing Deal Terms & ValuationsVC Experts, Inc.
Deal Terms, Pricing, and Valuations of the latest financing rounds for TaskRabbit, Inc. Similar data on thousands of private companies is available in the Valuation & Deal Term Database at http://vcexperts.com.
1) Terex is the 3rd largest manufacturer of construction equipment in the world, with sales of $10.1 billion over the last 12 months.
2) Terex aims to achieve $12 billion in sales and 12% operating margin by 2010, describing this goal as "12 by 12 in '10".
3) Terex has opportunities to improve margins through better pricing, supply chain management, and productivity initiatives. Reducing working capital, especially inventory, could free up hundreds of millions of dollars.
1) Terex is the 3rd largest manufacturer of construction equipment in the world, with sales of $10.1 billion over the last 12 months.
2) Terex aims to achieve $12 billion in sales and 12% operating margin by 2010, describing this goal as "12 by 12 in '10".
3) Terex has opportunities to improve margins through better pricing, supply chain management, and productivity initiatives. Reducing working capital, especially inventory, could free up hundreds of millions of dollars.
Mark Rajkowski, CFO of Credit Suisse, presented at the 2012 Global Paper & Packaging Conference. He outlined Credit Suisse's business model, which focuses on commercial excellence, innovation, and emerging markets to drive revenue growth of over 5% annually. This growth, combined with margin expansion through operational leverage and productivity, is expected to produce earnings growth of 7-10% and top quartile total shareholder returns.
1) Credit Suisse is presenting at its 2008 Annual Technology Conference and provides a safe harbor statement regarding forward-looking statements in the presentation.
2) Arrow Electronics touches all geographies, technologies, and end markets, connecting key players in unique and value-enhancing ways. It aims to grow faster than the market through operational excellence and financial stability.
3) Arrow is well positioned to weather an economic downturn due to changes made since the last tech sector downturn, including a stronger balance sheet with lower debt and higher liquidity than 10 years ago.
The document provides an overview of Terex Corporation from its Basics Industrials Conference presentation on May 8, 2008. It discusses Terex's purpose, mission, and vision. It highlights Terex's strong and diversified revenue base, with income from operations increasing 36% in 2007 and 28% in Q1 2008. It outlines Terex's goals for 2010 of $12 billion in sales and 12% operating margin. The document also provides an overview of each of Terex's business segments.
The document provides an overview of Terex Corporation and its business segments for an investor conference. It summarizes that Terex has a diversified portfolio across industries and geographies that provides balance through economic cycles. It also outlines opportunities to improve margins through pricing actions, supply management initiatives, and productivity improvements. The goal is to achieve $12 billion in sales and a 12% operating margin by 2010.
The document provides an overview of Terex Corporation for a May 2008 investor conference. It discusses Terex's purpose, mission, and vision. It summarizes Terex's sales, operating profit, and geographic diversity for 2007. It also outlines goals to achieve $12 billion in sales and 12% operating margin by 2010. Finally, it discusses opportunities to improve margins through pricing actions, supply management, productivity initiatives, and The Terex Way values.
The document provides an overview of Terex Corporation for a Merrill Lynch conference. It discusses Terex's purpose, mission, and vision. It also summarizes Terex's diversified business segments and product lines, with aerial work platforms, construction equipment, cranes, material processing and mining equipment being the largest segments. The document outlines Terex's goals for 2010 of achieving $12 billion in sales and 12% operating margins.
This document contains:
1) Forward-looking statements about Sallie Mae's beliefs, expectations, and assumptions that are subject to risks and uncertainties.
2) Information on Sallie Mae's strong business fundamentals, competitive franchise, assured FFELP profitability through 2010, adequate liquidity, expanding funding sources, and performing private loan portfolios.
3) Details on Sallie Mae's FFELP and private loan originations, funding including new government support programs, and liquidity positions.
Sebacia Inc.- Startup Company Venture Capital Financing Deal Terms & ValuationsVC Experts, Inc.
Deal Terms, Pricing, and Valuations of the latest financing rounds for medical startup company Sebacia, Inc. Similar data on thousands of private companies is available in the Valuation & Deal Term Database at http://vcexperts.com.
Robert Bohn and David Sagehorn of Oshkosh Corporation gave a presentation at the Goldman Sachs Conference in November 2008. They discussed Oshkosh's strong financial position and actions taken to reduce costs and debt. While market conditions were volatile due to the economic downturn, Oshkosh was well positioned with backlogs in defense, fire, and refuse collection vehicles. The presentation outlined Oshkosh's segments and strategies to manage through the difficult economy.
New Visa Rules for Tourists and Students in Thailand | Amit Kakkar Easy VisaAmit Kakkar
Discover essential details about Thailand's recent visa policy changes, tailored for tourists and students. Amit Kakkar Easy Visa provides a comprehensive overview of new requirements, application processes, and tips to ensure a smooth transition for all travelers.
South Dakota State University degree offer diploma Transcriptynfqplhm
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Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
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A toxic combination of 15 years of low growth, and four decades of high inequality, has left Britain poorer and falling behind its peers. Productivity growth is weak and public investment is low, while wages today are no higher than they were before the financial crisis. Britain needs a new economic strategy to lift itself out of stagnation.
Scotland is in many ways a microcosm of this challenge. It has become a hub for creative industries, is home to several world-class universities and a thriving community of businesses – strengths that need to be harness and leveraged. But it also has high levels of deprivation, with homelessness reaching a record high and nearly half a million people living in very deep poverty last year. Scotland won’t be truly thriving unless it finds ways to ensure that all its inhabitants benefit from growth and investment. This is the central challenge facing policy makers both in Holyrood and Westminster.
What should a new national economic strategy for Scotland include? What would the pursuit of stronger economic growth mean for local, national and UK-wide policy makers? How will economic change affect the jobs we do, the places we live and the businesses we work for? And what are the prospects for cities like Glasgow, and nations like Scotland, in rising to these challenges?
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...
Gs 2008 M&A Outlook
1. ACTIVISMActivism and Anti-RaidStandard Activism MaterialsStandard Activism BookFall 2007 UpdateUpdate Materials v13.doc lawrdu 15 Jan 2008 11:04 1/17
U.S. M&A Outlook Circa 2008
The New Reality
Illustrative Average Cost of Capital
12.0% 11.7%
10.2%
8.8% 9.0%
8.0%
Goldman, Sachs & Co.
January 2008
1996 2006 Today
Corporates Financial Sponsors
3. ACTIVISMActivism and Anti-RaidStandard Activism MaterialsStandard Activism BookFall 2007 UpdateUpdate Materials v13.doc lawrdu 15 Jan 2008 11:04 2/17
Deal Activity
The Bottom Line: Likely Net Reduction; Change in Nature of Acquirors
Key Takeaways
Financial buyers
— Increased cost of capital
— Financing backlog from pending deals creating overhang / doability issues
− Smaller transactions and joint bids with corporates
— But, $300 billion of capital to invest and new “class” of financial buyer
− Change in the nature of deals
Strategic buyers
? — Sellers:
−
−
Volatility / uncertainty = Fewer companies for sale
More spinoff transactions (Cadbury Schweppes, Bristol-Myers)
— Buyers:
− Decrease in CEO / Board confidence and increase in risk-averse behavior
− Higher M&A “hurdle”
− But, strategic buyers will have reduced competition from financial players
− Weakness of dollar will catalyze cross-border M&A
− Reduced stock prices = more potential acquisition opportunities
What are the likely overall results?
— Strategic activity is not likely to offset decrease in sponsor activity
— Handful of large deals could be big drivers of activity (and the big question mark)
2
4. ACTIVISMActivism and Anti-RaidStandard Activism MaterialsStandard Activism BookFall 2007 UpdateUpdate Materials v13.doc lawrdu 15 Jan 2008 11:04 3/17
Private Equity / Financial Investors
The Bottom Line: Current Conditions in the Financing Markets Likely to Meaningfully Reduce
LBO Activity
Cost of Capital Has Swung Back in Favor of Strategic Buyers Credit Spreads Are Considerably Higher
Illustrative Average Cost of Capital
550
12.0% 11.7% 500
10.2% 450
8.8% 9.0%
8.0% 400
350
300
250
200
150
1996 2006 Today 100
1/1/06 4/1/06 7/1/06 10/1/06 1/1/07 4/1/07 7/1/07 10/1/07
Corporates Financial Sponsors CDX BB Index CDX B Index
Illustrative Financing Terms Mean More Leveraged Finance Backlog Continues to Be Considerable
Operating / Financing Risk (Issuance vs. Backlog)
Pre-Correction Post-Correction HY Issuance Loan Issuance HY Backlog Loan Backlog
$352
Typical EBITDA Leverage: 7.0 – 8.0x 5.0 – 6.5x
Equity %: 20-35% 35-45%
Flex: L + 300 L + 500 $226
Caps: 11% 15%
Covenant: No Yes $86 $91 $86 $79 $94
$78 $101 $66 $69
MAC Clause: No Yes (generally) $56 $54
$39 $33
$11 $9
May-07
Nov-06
Mar-07
Nov-07
(7/07)
Oct-06
Dec-06
Jan-07
Feb-07
Apr-07
Jun-07
Jul-07
Aug-07
Sep-07
Oct-07
Dec-07
Projected
Peak
(YE 07)
3
5. ACTIVISMActivism and Anti-RaidStandard Activism MaterialsStandard Activism BookFall 2007 UpdateUpdate Materials v13.doc lawrdu 15 Jan 2008 11:04 4/17
Private Equity / Financial Investors
Likely Themes for 2008
Increase in PIPEs / Hybrids / Convertibles
— Examples: E*Trade, Countrywide Financial, Freddie Mac
Portfolio company acquisitions with greater equity component
Partnering with strategic buyers
Smaller deals (generally, deals will be less than $5 billion in the near term)
New players, such as sovereign wealth funds
Financial and distressed assets are key focus areas
Strong receptivity to monetization / sale of portfolio companies
4
6. ACTIVISMActivism and Anti-RaidStandard Activism MaterialsStandard Activism BookFall 2007 UpdateUpdate Materials v13.doc lawrdu 15 Jan 2008 11:04 5/17
Strategic Buyers – “Traditional Corporates”
Equity Markets, Volatility and Strategic Imperatives Will Drive Appetite for Acquisitions
M&A Volume is Positively Correlated with Equity Markets Corporates Continue to Have Balance Sheet Cash
$300 1,600 12
Current
$250 10 8.5%
M&A Volume ($bn)
$200 1,300
S&P 500
Cash/Assets (%)
8
$150
6
$100 1,000 30-yr average
5.9%
4
$50
$0 700 2
1999
2000
2001
2002
2003
2004
2005
2006
2007
Dec-
Dec-
Dec-
Dec-
Dec-
Dec-
Dec-
Dec-
Dec-
0
Dec-73
Dec-75
Dec-77
Dec-79
Dec-81
Dec-83
Dec-85
Dec-87
Dec-89
Dec-91
Dec-93
Dec-95
Dec-97
Dec-99
Dec-01
Dec-03
Dec-05
Dec-07
All Other Deals greater than $10B S&P 500
But M&A Volume Inversely Related to Volatility Increasing Cost to Move Down Credit Curve
US M&A Volume
350 296
VIX
Differential (bps)
300
Indexed M&A/VIX
250
169
200 149
150 91
74
100 37 33
6
50
0 Average Maximum Minimum Today
Jan-98
Jan-99
Jan-00
Jan-01
Jan-02
Jan-03
Jan-04
Jan-05
Jan-06
Jan-07
1992 - 2007
A to BBB BBB to BB
Source: Thomson Financial Securities Data, FactSet
5
7. ACTIVISMActivism and Anti-RaidStandard Activism MaterialsStandard Activism BookFall 2007 UpdateUpdate Materials v13.doc lawrdu 15 Jan 2008 11:04 6/17
Strategic M&A – Trends and Developments
Strategic Buyer Activity is Now Driving M&A Strategic Deals are Still Happening (US Deals Since July 2007)
Amt
US Strategic M&A Volume
$180 100% Acquiror Target ($bn)
Strategic M&A as % of Total
Announced Volume ($bn)
Strategic M&A as % of Total
$160
90% Basell Lyondell Chemical $18.8
$140
$120 80% Transocean GlobalSantaFe 17.4
$100
70% Ingersoll-Rand Trane 11.5
$80
$60 60% Vivendi Universal Games Activision 10.5
$40
50% Hexion Special Chemicals Huntsman 10.1
$20
$0 40%
Petrochemical Industries Co Dow Chemicals 9.5
May-06
May-07
Mar-06
Nov-06
Mar-07
Nov-07
Jan-06
Feb-06
Apr-06
Jun-06
Jul-06
Aug-06
Sep-06
Oct-06
Dec-06
Jan-07
Feb-07
Apr-07
Jun-07
Jul-07
Aug-07
Sep-07
Oct-07
Dec-07
KSC (Petrochemicals)
Toronto-Dominion Bank Commerce Bancorp 8.6
Siemens Medical Solutions Dade Behring Holdings 7.7
“Mergers of Equals” Have Received Positive Market Reactions
Nokia NAVTEQ 7.6
27% National Oilwell Varco Grant PrideCo 7.5
24%
% Change in Price
(Day Announced)
SAP Business Objects 5.7
18%
16%
12% Henkel National Starch & Chemical 5.5
10% (Adhesives business)
7% 6% 5% 5%
Plains Exploration & Pogo Producing 5.4
Production
Bank of New
Bowater
Compression
Compressor
Financial
XM Satellite
Transocean
GlobalSantaFe
Abitibi
Sirius Satellite
Mellon
Philips Electronic Respironics 5.1
Hanover
Universal
York
Radio
SK Telecom Sprint Nextel 5.0
Source: Thomson Financial Securities Data, Capital IQ
6
8. ACTIVISMActivism and Anti-RaidStandard Activism MaterialsStandard Activism BookFall 2007 UpdateUpdate Materials v13.doc lawrdu 15 Jan 2008 11:04 7/17
Strategic Buyers – Observations From the Last Downturn
M&A Will Continue, But Overall Volume Likely to Decline
The First Half of 2007 Looked A Lot Like 2000’s Peak, So
if LBOs are the New “Tech Bubble”… Opportunistic Hostile Activity Will Spike Post-“Crises”
1999-2000 1H2007
Hostile as a % of Total M&A
31% 6 Months Prior 6 Months After
Non-Tech 24%
LBOs 19%
50.9% 18% 17% 18%
31.0% 15%
10%
8% 7%
5% 4% 5% 5%
Stock Gulf War Russia- Russian- Tech Bubble 9/11 & Hurricane
Market Conflict Mexico- LTCM Crisis Burst (9/00- Invasion of Katrina
Crash (12/14/90- Orange (8/18/98- 3/01) Afghanistan (8/26/05-
Tech-Related Strategic M&A (10/14/87- 1/16/91) County 10/8/98) (9/11/01- 8/30/05)
49.1% 69.0% 10/19/87) (10/11/94- 12/7/01)
12/20/94)
Traditional M&A Will Be Impacted (But Not As Much) P/E Multiples Will Likely Diverge Based on Credit Rating
A- Or Higher Between BBB- & BBB+ Below BBB-
22.6x
% Decline y-o-y
19.9x 18.4x 17.3x
18.1x 17.4x 17.4x
17.0x 17.5x 17.8x 17.0x
Median P/E Multiple
17.8x 17.1x 17.3x
15.3x 15.5x 16.5x 16.2x 16.4x
-33% 13.1x
-38% 11.7x
-64%
-73%
2001 vs. 2000 2002 vs. 2001
Non-Tech Tech-Related 2001 2002 2003 2004 2005 2006 Current
Source: Thomson Financial Securities Data
7
9. ACTIVISMActivism and Anti-RaidStandard Activism MaterialsStandard Activism BookFall 2007 UpdateUpdate Materials v13.doc lawrdu 15 Jan 2008 11:04 8/17
Cross-Border M&A Is Accelerating
Cross-Border M&A is Nearly Half of Overall Activity Sovereign Wealth Funds – Key Investments
Abu Dhabi Inv Authority Citigroup (4.9%), Advanced Micro Devices
$2,200 Cross-Border Volume $2,053 50%
(“ADIA”) (8.1%), Arab Banking Corporation (26.6%), Arab
2,000 % of Total M&A ($650-1,000 billion) International Bank (25%) Banque de Tunisie et
48%
1,800 des Emirats (38.9%), Union Cement (20.4%)
Cross-Border Volume ($bn)
45%
Percent of Total M&A
1,600 Barneys New York (100%), Standard
1,400 Chartered (2.7%), GLG Partners (3%), Time
40% Warner (2.4%), SpiceJet (3.34%), One
1,200 Istithmar
$1,048 Trafalgar Square (100%)
1,000 ($8 billion)
$920
35%
800 Och-Ziff (9.9%), Doncaster’s Group (100%),
$589 35%
600 EADS (3%), HSBC (Undisclosed), Mauser
$348 32% 30% (100%), Merlin Entertainment Group (20%),
400 $361 30%
Dubai International Capital Travelodge (100%), Sony (Undiscl.)
200 29% 27% ($12 billion)
0 25%
2002 2003 2004 2005 2006 2007
Carlyle (7.5%), Ferrari (5%), Spyker Cars
(17%)
Mubadala Development,
Developing World Acquiring Developed World Assets Abu Dhabi
British Petroleum (Undisclosed), Daimler
$166 Chrysler (7%)
Kuwait Investment Authority
($213 billion)
Volume ($bn)
Barclays (2.1%), Standard Chartered (14%),
Merrill Lynch (Undiscl.)
$73
$48 Temasek, Singapore
$25 ($108 billion)
$22 $17 $22
$10 $12 $10 $7 China State Investment Morgan Stanley (9.9%), Blackstone (9.9%)
Company
($200-400 billion)
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Qatar Investment Authority Sainsbury (25%), London Stock Exchange
($50-70 billion) (20%), OMX (10%), Lagardere, (5.1%)
Source: Thomson Financial Securities Data, FactSet, other public sources
8
10. ACTIVISMActivism and Anti-RaidStandard Activism MaterialsStandard Activism BookFall 2007 UpdateUpdate Materials v13.doc lawrdu 15 Jan 2008 11:04 9/17
Is the U.S. “For Sale”?
Foreign acquisitions of U.S. companies has outpaced Illustrative Cost of US$1 Billion Cross-Border
U.S. acquisitions of non-U.S. companies for the first time Acquisition
Non-U.S. companies can now acquire U.S. assets (and Jan-06 Nov-2007 % Change Market P/E
companies with substantial U.S. exposure) at significant 12.55x
discounts to historical exchange rates € 0.84 bn € 0.69 bn (18.8)% (DJ Euro Stoxx
50)
However, with exchange rates at a significant discount, 12.42x
the value of earnings purchased is also less than it was ₤ 0.58 bn ₤ 0.50 bn (13.5)%
(FTSE 100)
previously
19.08x
— Exchange rate dislocations historically have not been C$ 1.17 bn C$ 0.99 bn (15.3)% (S&P/TSX
Composite)
a principal driver of M&A
18.22x
¥ 118 bn ¥ 112 bn (5.0)%
(Nikkei 225)
BRIC Countries:
For the First Time, Foreign Buying of US Companies 15.10x
R$ 2.35 bn R$ 1.78 bn (24.3)%
Represents Majority of US Cross-Border Flows (Bovespa)
13.46x
US Acquisitions of Non-US Companies RUR 28.7 bn RUR 24.5 bn (14.8)% (Russian RTS
$404
Non-US Acquisitions of US Companies Index)
27.88x
$301
IDR 45.0 bn IDR 39.3 bn (12.5)%
Volume ($bn)
(BSE Sensex)
$234
$217
$183 44.37x
$163 CNY 8.1 bn CNY 7.3 bn (9.5)% (Shanghai SE
$123 $135
Composite)
$100
$82
18.64x
$1 bn $1 bn N/A
2003 2004 2005 2006 2007 (S&P 500)
Source: CapitalIQ; Thomson Financial Securities Data; Bloomberg
9
11. ACTIVISMActivism and Anti-RaidStandard Activism MaterialsStandard Activism BookFall 2007 UpdateUpdate Materials v13.doc lawrdu 15 Jan 2008 11:04 10/17
What Will Be The Deal Dynamics?
Increased Tensions Regarding “Deal Certainty”
Boards Will Assert More Control in M&A Processes in Negotiating LBOs
Public scrutiny / risk of embarrassment Buyer Perspectives Seller Perspectives
Acquirors and activist shareholders approaching board Reduced competition may lead Boards likely to demand more
members directly with deal ideas to demands for less “seller- certainty in M&A contracts
friendly” M&A terms More granularity /focus on
Board involvement in discussing deals with shareholders Fewer carveouts to Material agreements with financing
and ISS Adverse Effect clauses sources
Potential “O’Neal effect” – Will CEOs be less likely to act Less willing to accept go-shop Increased reverse breakup fees
without board authorization? clauses and reverse breakup
fees
Bottom Line:
More focus on issues relating to deal completion
More deals will fall apart
Focus on Shareholder Support of M&A Deals Other Key Issues
Attempts to bring large shareholders “under the tent” Emergence of new players
prior to announcement, similar to U.K. transactions — SPACs (Special Purpose Acquisition Companies) –
ISS’s Contentious List over $10 billion raised to date
— List of deals which ISS is focused on that require a — Sovereign Wealth Funds
shareholder vote — Funds paired with or formed by former executives
— ISS recommends against a significant percentage of Shareholder vote dynamics
transactions on this list — Stock lending and derivatives
— Setting the record date
— Getting out the vote
Cross-border transactions
— Flowback (stock deals)
— CFIUS
10
12. ACTIVISMActivism and Anti-RaidStandard Activism MaterialsStandard Activism BookFall 2007 UpdateUpdate Materials v13.doc lawrdu 15 Jan 2008 11:04 11/17
Rule Changes Have Re-Opened Tenders as the Preferred
Deal Structure
Number of U.S. Tender Offers Emerging Themes
Tender offers have become more common since the
implementation of SEC guidance relating to the “Best
70 Price Rule”
Tender offer provides tactical advantage for both
sides
— Smaller window for deal jump
— Smaller window for opportunity to argue that a
# of Tender Offers
MAE has occurred
More likely to get 50% approval
— Shareholders are more likely to tender than vote
30 — Mitigates “dead shares” problem
27
— No ISS involvement (at this point)
21
Merger should be used if
— Regulatory delay
— Buyer shareholder vote is required (if more than
3 20% of shares issued)
Can be used in LBOs, but not the preferred structure
2003 2004 2005 2006 2007
— Financing risk
Source: FactSet MergerMetrics
11
13. ACTIVISMActivism and Anti-RaidStandard Activism MaterialsStandard Activism BookFall 2007 UpdateUpdate Materials v13.doc lawrdu 15 Jan 2008 11:04 12/17
Shareholder / Management / Board Dynamics
Shareholder Activism
Shareholder activism will continue
— Perception of “alpha” returns has resulted in increased fundraising by activists
— More direct engagement of boards, other shareholders and potential buyers
— Focus likely to shift given market conditions divestiture of noncore assets or sale of company to strategic buyers vs.
LBO or additional leverage
— New Internet proxy rules, other regulatory proposals and the removal of takeover defenses will make it easier to pursue
proxy fights
Deals have become more difficult to get done
— Rapidity of trading and stock lending impacting voting trends
— Activism against transactions by hedge funds and traditional investors
— ISS influence on M&A transactions
— More topping bids / go-shops
— Process litigation is the norm
— Cross-border issues
Corporate governance used as a “wedge” to achieve other ends
— Pressure to remove takeover defenses
— Attack compensation and related disclosures to undercut CEO
— Threat of withhold votes – particularly at companies with “majority vote” requirements for director elections – to effect
other changes or actions
12
14. ACTIVISMActivism and Anti-RaidStandard Activism MaterialsStandard Activism BookFall 2007 UpdateUpdate Materials v13.doc lawrdu 15 Jan 2008 11:04 13/17
Institutionalization of Activism
How Have the Goals of Activism Evolved?
Yesterday
(Pre-Crunch) Today
Sale of Company
(sales to strategic buyers)
LBO
Leveraged Recapitalizations
Change Management / Board
Portfolio Changes
(divestitures to strategic buyers)
Monetization of Balance Sheet
Change Governance
13
15. ACTIVISMActivism and Anti-RaidStandard Activism MaterialsStandard Activism BookFall 2007 UpdateUpdate Materials v13.doc lawrdu 15 Jan 2008 11:04 14/17
Post-Bubble, Post-Proxy Season Activism
Current Drivers of Activism Post-Bubble Activism Situations
CalPERS increasing investments in “activist”
funds from $5 billion to $12 billion
(Ramius) (Icahn) (Icahn)
Success of targeted activism vehicles
— Pershing Square raised $2 billion in two
weeks to pursue activism at an unnamed
(Chapman Capital) (Ramius) (Barington)
$40 billion “U.S. icon” (later disclosed to
be Target Corporation)
Trian recently filed to raise $750 million for a
SPAC (Breeden) (Knight Vinke) (S.A.C. Capital)
Perception that activists have achieved
“alpha” returns
(Barington) (Red Mountain) (Steel Partners)
ISS support of many dissident proxy fights
leading to greater success
More funds pursuing activism
(Relational) (K Capital) (Sandell)
Shifts in sector focus by activists
— In: Sector consolidation
— Out: Leveragability (Pershing Square) (Tracinda) (HealthCor)
14
16. ACTIVISMActivism and Anti-RaidStandard Activism MaterialsStandard Activism BookFall 2007 UpdateUpdate Materials v13.doc lawrdu 15 Jan 2008 11:04 15/17
Hostile Activity Has Increased and Fewer Companies Remain
Independent, Driven by Buyer Opportunism and Fewer Defenses
Hostile M&A Activity Continues to be High1 Outcome of Hostile Bids > $250mm
$725
$620
Global Hostile/Unsolicited Volume ($bn)
30% 28%
29%
41%
$264 $269
41%
30%
$119
1997-2004 2005-2007
Remained Independent Sold to Third Party
2003 2004 2005 2006 2007
Sold to Unsolicited Bidder
Source: Thomson Financial Securities Data
1
Hostile / unsolicited activity includes transactions that began as unsolicited.
15
17. ACTIVISMActivism and Anti-RaidStandard Activism MaterialsStandard Activism BookFall 2007 UpdateUpdate Materials v13.doc lawrdu 15 Jan 2008 11:04 16/17
What’s Next?
Final Observations
Strategic Buyers:
Proactive, well-capitalized industry leaders can press their advantage(s)
— Cash / certainty will be king
Inbound activity into the U.S.
Certain buyers will be aggressively opportunistic
Financial Buyers:
Sponsors will be more creative (PIPEs, divestitures, debt, LPDs)
Financing terms will revert to prior periods with attendant impact on valuation (lower multiples, less exotics, market
outs)
Process:
Tougher for sellers to generate broad auctions and competition
Wider bid / asks and longer negotiations
Low tolerance for risk
Activism:
Activism, driven by poor performance or industry dynamics
— Continued deal scrutiny by investors
Gap between boards and shareholders will continue to narrow
16