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Well, it is official.....the definition of insanity really is doing the same thing over and over again      and expecting a different result. Although this may seem like a tired saying, the sad reality is that many, many situations continue to give it truth and merit. One of those is how Mergers and Acquisitions are handled.

We have been working with organizations who want to grow and the question that is often asked is 'do we grow organically or by acquisition' and the debate begins. If the decision lands on the side of acquiring a company then this is where the insanity tends to begin.

Why is it insanity? Well, of course, the first step is to try and determine who it is that you want to buy and why. This is where the money people start to get involved and many questions are asked about the amount that we want to spend on the acquisition, the value of whom we may want to buy, whether their numbers will warrant us buying them etc. Many hours will go into the 'due diligence' process which involves mostly looking at financial statements, sales numbers, market size, etc. Someone may ask about the key principal directors to assess whether or not we think they are 'competent.'

What about asking questions such as do our cultures align? do we share any core values? are our purposes aligned? How smooth or difficult might this marriage be?

Maximize the value of your transaction
June 7th, 2017 | Omni Mont-Royal Hotel, Montreal

MetA---Inside-articleEN

Between 40% and 80% of mergers and acquisitions do not yield the expected results. In 85% of these situations, the main cause of failure is the culture difference. Therefore, integration is the main challenge to achieve growth. Do you have all the assets on your side to negotiate and withdraw the full value of your transaction?

Come hear M&A champions and learn how to:

  • Set the right price in order to maximize the value of the transaction;
  • Establish a win-win communication between buyer and seller;
  • Plan effective integration of operational systems and cultures;
  • Direct due diligence depending on your strategic objectives;
  • Assess the risks specific to an international transaction.

Get 10% discount on current prices with the DISCOUNT CODE: 1M&A

The event will be presented in French.

THE REAL VALUE OF A PRE-TRANSACTION IT DUE DILIGENCE.

« Had we understood the complexity of IT and their direct impact on customers of our newly acquired company, we would have negotiated the price of the transaction and the contents of the transition services agreement (TSA) very differently. »

« As investors, we dissect in detail each of the facets of data that we understand: debt, financial ratios, goodwill, etc. When comes time to evaluate IT expenses, we often jump over this line of spending because we do not understand IT fully. »

These quotes from our customers clearly demonstrate why we are seeing an increasing demand in pre-transaction IT due diligence (DD). The key question ...

Have you ever been on the receiving end of the "the informal pitch"? You know, that painfully awkward scenario when a good friend or family member pitches you on their game changing business idea. And of course, with that pitch comes the million dollar question, can you help me? Now up until a few years ago the term "help" had one of two meanings. Firstly, you were perceived as affluent enough to fork over a cheque to cover most of the damage. But unless you're Kevin O'Leary on the set of Dragon's Den, investing a sizable sum of your hard earned cash into venture capital might not be your thing. Secondly, you were perceived as a well-connected mover and shaker who has "rich friends".

Montréal, Canada - April 13th, 2015 - The 8th edition of the M&A Forum is right around the corner. Hosted by the Château Bonne Entente, the Forum will take place on the 27th of April in Québec City. The M&A Forum attracts experts in mergers and acquisitions, business owners, dealmakers, professionals coming from various arenas of finance including, but not limited to, financing, Quebecois private equity, risk capital, corporate finance, accounting, law and students.

This event will bring together 30 exhibitors, 300 participants and 4 workshops. During the Forum, 4 workshops will be presented and directed by industry professionals and experts who will speak about various compelling topics. This year, the participants will engage in fascinating discussions and debates piloted by influential leaders in Quebec, such as M. Jean-Maxime Gérien, president of Finalta Capital and M. Michel D'Amours, associate at a prestigious national law firm, Miller Thomson S.E.N.C.R.L. amongst others; these innovators and industry leaders will share their expertise.

Following our last post it dawned on us. In a world inundated with industry, company, and those obnoxious texting acronyms, how could people be expected to stay abreast on what appears to be an infinite universe of alphabet soup combinations? Add to the fact that each year pop culture idolizes waves of trendy acronyms, and it's only natural that we as humans forget a few of the more fundamental abbreviations that are driving the economy. Case in point is Greece, with the IMF, ECB, and EC; acronyms being thrown around in the media like a beach ball at a Nickelback concert. Risking being caught off-guard or worse asking a colleague for clarification, we decided to step in to help put your anxiety at ease. This is the first part of a series of blog posts designed to help refresh your memory on key theories and concepts, the goal of which is to help turn you into a expert and hero in these subjects at your next water cooler session or dinner party; or at least appear to be.

Austerity, Varoufakis, Bailout, Yogurt

What do all these words have in common? They're all very hot right now and all relate somehow to the Greek economy. Well yogurt not as much, but the other 3 have detrimental, long term ramifications for the country's fiscal stability.

Over the past few weeks, Greece's freshly minted Finance Minister Yanis Varoufakis, has been presenting his case to the other members in the European Commission, the ECB, and the IMF for a new bailout set to ease already high austerity measures plaguing the country. Digging his heels in and standing tall with his Prime Minister Alexis Tsipras, the two are trying to deliver on their anti-bail out campaign. But before we jump into that, let's take a step back and see where this all started from.

Ottawa  and Saint-Georges-de-Beauce will host their own M&A Clubs in September. So, there will be 10 clubs across the Canada with more members, more business opportunities, more meetings… 2015 will be bigger than ever with more occasions to raise awareness and network M&A.

Its presence in 10 Canadian cities offers to hundreds of professionals from the M&A industry to network and pitch their mandates and business opportunities. In the last ten months, 80 meetings took place, all very well attended.
Over $125 Million of transactions have been completed through the M&A Club since 2012.

 

The October 22nd, 2014, the M&A Club Laval, under supervison of Kevin Morel (R&D Capital) and Manon Robert (Catena), proposed its monthly meeting in a new format. 5 companies made a short presentation in front of M&A professionnals, members and non members. In a full room of the CLD Laval, which we thank for welcoming us, this meeting was successfull and offers a very interesting idea of what next meetings will be.

Bloomberg LP is now a member of the M&A Club. This prestigious company is a leader in business and financial information. Bloomberg LP also joins the prestigious names of the exhibitors for the next M&A Forum December 2nd, 2014, at the Omni Hotel.

 

Valuations of underperforming businesses have peaked in recent years. While the overall process of valuing financially distressed versus healthy companies is largely the same, some modifications are needed.  Private equity groups and other investors in distressed assets must be aware of these nuances when running discounted cash flow (DCF) models.  Heightened focus on due diligence procedures, especially the source of financial projections, is essential.
 

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