Home > Uncategorized > Mergers & Acquisitions Finally 2009 has arrived…

Mergers & Acquisitions Finally 2009 has arrived…

September 14, 2009 Leave a comment Go to comments

After the financial crisis in 2008 and for the most of 2009, the equity markets are finally starting to see signs that Merger and Acquisitions are coming back. This is usually a sign of two factors: That the markets are calming down and as a result CEOs are better able to plan for future growth instead of playing defense. The other factor is that with calmer credit markets, companies are able to borrow and finance acquisitions cheaper and under more favorable terms.

In the last three weeks of the end of summer and the start of the fall 2009 season, we have seen a few announcements for M&A. Disney made an announcement to pay $4bn for Marvel Entertainment. We also saw an international announcement by Kraft to buy out Cadbury for $17bn, in what will turn out to be a great story to follow (brings back memories from Barbarians at the Gates, doesn’t it?), since the initial deal has been rejected by Cadbury and we have plenty of moving parts that will continue to develop in the next couple of months. Another deal that is still pending regulatory approval is the $41bn Merck/Schering Plough transaction announced over 6months ago.

Do you know if you can still make money on these deals? Have you been keeping track of the spread in the deals? Do you know if the deal to buy Marvel by Disney was for cash, stock or both? Does it matter? Of course it does, especially if you want to make money in the market. What about the Merck Schering Plough deal is there any way left to make money there? There could be, if you know what you are looking for. How about the BHI take over of BJS, where is the spread on that deal?

As more deals are announced in 2009 you need to be prepared for them. You might be invested in the company that is doing the acquisition or one that is being acquired, either way you need to understand the dynamics of the announcement so that nothing will be a surprise as the deal unfolds.

Click here to view a short 5min preview of an e-presentation that will give you the edge on the next M&A announcement – Be Prepared:

http://keystonetrading.acrobat.com/mapreview/

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