strategic deals

Strategic buyers on the rise

Jim Kim — Mon, 16 Jun 2008 07:37:09 -0400

TheDeal.com reports that when the Royal Bank of Scotland auctioned off its insurance unit, private equity firms were told not to participate because they weren't likely to win. This after several private equity firms had indicated interest. The story confirms what we've been saying for a while now, which is that strategic deals are trumping financial deals these days. People don't seem to trust the private equity guys all that much any more. No one wants to end up in a broken deal situation, and few think the financing is there. So companies hunting for a strategic fit now have a window of opportunity. Of course, they're facing a tougher financing climate as well. Are we back to stock deals?

For more:
- here's the article

Related Article:
The return of strategic deals?

Citigroup analysts: Slowdown in M&A a good thing

Thu, 22 May 2008 06:59:56 -0400

This might get you punched in some offices: The current slowdown in deal making is a healthy thing. The case is really not hard to make, and Citigroup has made it well, according to the Financial Times. Wacky bull markets of the near-bubble variety give rise to deal making frenzies that seem to disregard way-too-high valuations. The report does not think we'll fall off a cliff. Rather, we'll return to normal, with more reasonable debts loaded up on acquired companies, more strategic deals and more reasonable valuations. It would be hard to argue that's a bad thing. But you may want to whisper.

For more:
- here's the Financial Times article