Mergers and Acquisitions – How to Avoid a Bad M&A Deal

The largest mergers and acquisitions ever have included deals like the $71.3 billion acquisition of 21st Century Fox by Walt Disney Company in 2019. These massive deals are often hailed as a success story, but reality is that a lot of M&As result in disasters. Failures can be caused by various factors, such as overpaying or cultural differences. It’s important to learn from the mistakes of others. Our free guide offers information on how companies can avoid a disastrous M&A deal.

M&A activity slowed down in the second half 2022, due to macroeconomic uncertainties and volatile capital markets. However, there are indications that the pace of strategic transactions could pick up again soon.

When companies merge, they utilize two primary methods such as mergers or acquisitions. A merger is the fusion of two businesses to create a single entity. An acquisition is the acquisition of a company, either with cash or stock, or even debt, then folding it into your business operations.

In an acquisition, the buying company buys all the assets and liabilities of the intended target, leaving nothing but cash (and possibly debt). Blackstone’s purchase of Italian infrastructure company Atlantia for $28,6 billion as well as Brookfield’s purchase of Deutsche Funkturm tower business for $5 billion are two examples.

US private equity firms are catching up to the trend of purchasing European assets. Seven of the top ten deals of the last year were involving US private equity firms including Blackstone’s $28,6billion acquisition of Atlantia and Bristol-Myers Squibb’s $28,6 billion purchase of Celgene Cancer Drug Company.

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