M_A+Sale+Process

M_A+Sale+Process - The M&A Sale Process FIN 461...

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FIN 461 Professor Thomas Boulton
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The sale of a target is a complex event that involves numerous parties (e.g., shareholders, management, employees, etc.) Sellers typically hire an investment bank to shepherd them through the process: Identify strategic alternatives Value maximization Speed of execution Certainty of completion
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How to conduct a sale? There are four general ways to conduct a sale: Private negotiation Example: Mars acquisition of Wrigley – initiated by a private meeting of the CEOs of the two companies Targeted auction (aka, controlled sale) Example: CenturyTel acquisition of Embarq – Embarq made contact with 5potential bidders in the telecom industry, 4 gave initial indications of interest, 2 submitted written offers Broad auction Example: Ricoh acquisition of Icon Office Solutions – Icon’s board contacted 23 potential bidders, 11 signed confidentiality/standstill agreements, 5 gave indications of interest, Ricoh made the only binding offer Unsolicited expression of interest Example: King Pharmaceutical acquisition of Alpharma – King made unsolicited inquiries about acquiring Alpharma, which ultimately conducted an auction for the firm What are some positives and negatives of each?
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This note was uploaded on 12/19/2011 for the course FIN 461 taught by Professor Boulton during the Fall '11 term at Miami University.

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M_A+Sale+Process - The M&A Sale Process FIN 461...

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