SUCCESSFUL ACQUISITIONS

M&A Insights from David Braun and Other Experts

Latest Articles

Will Bayer Acquire Monsanto - Lessons for M&A Middle Market

Will Bayer Acquire Monsanto? Lessons for the Middle Market

Monsanto has rejected Bayer’s all-cash $62 billion bid, but says it is open to negotiations. A combination of Bayer and Monsanto would create the largest seed and pesticide business globally with $67 billion in sales. While you may not be creating an agricultural behemoth with your acquisition, there are a few lessons we can learn […]

How to Measure Culture

How to Measure Company Culture

Culture is an important part of an organization, but it can be difficult to define. Unlike other areas, such as finance and operations, which have concrete metrics like revenue, EBITDA, and number of employees, quantitatively measuring culture can be challenging. Leaders often rely on their “gut” to understand another company’s culture, but this leaves an […]

Mixed reports on middle market growth

Mixed Reports on Middle Market Growth

Middle market deal activity reached its lowest level since 2009, according to Mergers & Acquisitions. This may be a result of concerns about the upcoming U.S. presidential election and because banks are shying away from lending to private equity-backed deals. While middle market M&A activity is down, when compared to 2015 levels, the middle market […]

Strategic Buyers Hungry for Acquisitions

Strategic Buyers Hungry for Acquisitions

Recent analysis shows that deal activity reached $435 billion in the first quarter of 2016 in North America and Europe. This is the second highest total on record and 84% of the deals were executed by strategic buyers. Companies with lots of cash on their balance sheets and are now willing to deploy some of it […]

4 Ways to Maximize Effectiveness of Due Diligence

4 Ways to Maximize the Effectiveness of Due Diligence

Due diligence is an important step in the acquisition process that comes prior to closing a deal. Most people think about due diligence from a risk assessment standpoint or as a checklist of items that must be completed in order to move the deal forward. Traditional reasons for undertaking due diligence include evaluating strengths and […]

Do you really understand the seller?

Do You Really Understand the Seller?

We recently had a situation where our client, the buyer, was pursuing the acquisition of one of their suppliers. The buyer expected the process to be relatively easy because he and the seller had known each other for years. However, when he tried to speak to the owner about possibly selling his company, he was […]

What not to say to an owner in your first meeting

What Not to Say to an Owner in Your First Meeting

When meeting an owner for the first time, your goal is not to instantly sign a deal. You first want to get to know them and make them feel comfortable about selling their business to you. In order to do this, there are some important questions to ask and subjects to broach, which I’ve covered […]

Warren Buffett Advice for Strategic Acquirers

The Most Important Thing about M&A According to Warren Buffett

Last week, thousands of investors gathered at Berkshire Hathaway’s annual shareholder meeting in Omaha. Warren Buffett, perhaps one of the greatest strategic acquirers, shared his insights for successful acquisitions. There are two pearls of Buffett wisdom, reported direct from the meeting by Dealbook that I’d like to highlight in this post. Looking at the Big […]

Matt Craft Vice President Capstone

Capstone Promotes Matthew Craft to Vice President

As Vice President, Matthew Craft will continue to execute strategic mergers and acquisitions for middle market companies. Capstone, a leading management consulting firm that helps middle market companies grow through mergers and acquisitions, is pleased to announce the promotion of Matthew (Matt) Craft to Vice President. In his new position as Vice President, Matt will […]

Yes No Owners

How You Can Get an Owner to Say “Yes” to Acquisition

When contacting an owner about acquisitions, don’t be surprised to hear “no.” Most owners, when asked about selling their “not-for-sale” business will automatically refuse simply because it’s unexpected. Remember, for an owner focused on running the day-to-day operations of his business, this offer is coming out of the blue. There are, of course, a number of […]

Coke plans to sell off all of its US manufacturing plants by 2017.

Pruning for Growth — the Power of Divestment

News in from Coca-Cola reminds us that growth is more about recalibration than it is about adding size. According to the Wall Street Journal, Coke plans to sell off all of its US manufacturing plants by 2017. Why would they do that? Coke has struggled with its asset heavy distribution over the past couple of […]

First Impressions

You Only Have One Chance to Make a Good First Impression

Think about the last time that you met somebody for the first time: a coworker, a friend, a romantic interest, or even a new barista at the coffee shop. When you first met this person, whether you consciously thought about it or not, you formed an impression of them, even though you didn’t really know […]

Capstone at nacuso 2016 conference

Snapshots from the 2016 NACUSO Annual Conference

Last week Capstone Managing Director John Dearing had the opportunity to attend the 2016 NACUSO Annual Conference on April 4-7, 2016. Over 400 people attended the Las Vegas event, exchanging ideas and listening to industry experts. Conference topics included investment services, insurance services, innovation and operations, technology, member business lending, mortgage services, and business development. Erik […]

Pfizer and Allergan Break Up – Lessons in Staying Ahead of Acquisition Hazards

Pfizer and Allergan Break Up: Lessons in Staying Ahead of M&A Hazards

Pfizer and Allergan have announced that they are abandoning their $160 billion merger. This resulted from a political storm around tax inversions, a technique whereby US companies relocate abroad to avoid the high US corporate tax rates. The Treasury department took action to insert new rules that effectively killed the financial benefits of the deal. […]

How to Break Bad News Without Sinking Your Acquisition

How to Break Bad News without Sinking Your Acquisition

Poor communication can really hamper your integration efforts, especially when you have to break bad news to your employees. When it comes to sharing an unpopular message, some executives try to sugar coat or beat around the bush. In my experience, avoidance tactics are not effective and just make employees angrier once they eventually find […]

Minority Investment

What is a Minority Investment?

Minority investments are a creative way to think about transactions, one that is often overlooked. When we create a transaction with a company, there is a spectrum of possible involvements—everything from an informal strategic alliance to a 100% acquisition. A minority investment is somewhere in between these extremes. Typically consisting of a quarter to a third […]

Why Disagreement on you M&A team is good

Why Disagreeing With Your M&A Team Is Good

You may be surprised I’m saying this, but vigorous arguments in your acquisition team can be a good thing. In fact, I would be alarmed if there was never any disagreement over a prospective purchase. Either someone is lying or afraid to speak up, unless your entire team is quite exceptionally in sync. Dissent can […]

What Is Happening with Valuation Multiples Today

What Is Happening with Valuation Multiples Today?

In 2015, record valuations drove a boom in mergers and acquisitions activity, leaving many to wonder when the deal bubble would burst. In 2015, US buyout firms paid an average of 10.3 times EBITDA compared with the previous record of an average 9.7 times multiple in 2007. Despite hitting a peak, valuations are still expected […]

LOI Audience

The LOI Audience: More than Just the Owner

Do you know who will read your letter of intent? Many assume that only the owner of the company you wish to purchase will read the LOI, but often there’s a wider audience. While the owner is your top priority, there are other likely readers of the LOI you need to consider: the board of […]

What Is Synergy

What Is Synergy?

When speaking about mergers and acquisitions you often hear the word “synergy” used to explain the rationale of a deal. Here are just a few examples from recent headlines: “The Renault-Nissan carmaking alliance expects to generate 5.5 billion euros ($6 billion) of synergies in 2018.” “[Sysco] said it believed it could achieve $600 million in […]