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M&A Activity (m&a + activity)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting100%

Selected Abstracts

Due diligence issues in China

JOURNAL OF CORPORATE ACCOUNTING & FINANCE, Issue 2 2009
Jo Ann McGee
The People's Republic of China was identified as one of the most attractive locations for anticipated mergers and acquisitions (M&As) over the next 18 months. Unfortunately, it is also considered to be one of the riskiest locations for investment,partly due to the growth of white-collar crime (WCC). So any multinational firm planning M&A activities in China should include a search for WCC in their due diligence. However, conducting due diligence in China is very difficult. The authors take a critical look at these issues and detail the challenges that multinational firms will face. They also give some practical advice on how to handle those problems. © 2009 Wiley Periodicals, Inc. [source]

The outlook for global M&A activity

ECONOMIC OUTLOOK, Issue 2 2007
Article first published online: 14 MAY 200
First page of article [source]

Morgan Stanley Roundtable on Private Equity and Its Import for Public Companies

JOURNAL OF APPLIED CORPORATE FINANCE, Issue 3 2006
Article first published online: 4 OCT 200
The role of private equity in global capital markets appears to be expanding at an extraordinary rate. Morgan Stanley estimates that there are now some 2,700 private equity funds that either have raised, or are in the process of raising, a total of $500 billion. With this abundance of available equity capital, the willingness of private equity firms to participate in "club" deals, and the leverage that can be put on top of the equity, private equity buyers now appear able and willing to pay higher prices for assets than ever before. And thanks in part to this new purchasing power, private equity transactions reportedly account for a quarter of all global M&A activity as well as a third of the high yield and IPO markets. The stock of capital now devoted to private equity reflects the demonstrated ability of at least the most reputable buyout firms to produce consistently high rates of returns for their limited partners. Although a talent for identifying and purchasing undervalued assets may be part of the story, the ability to produce such returns on a consistent basis implies an ability to add value, to improve the performance of the operating companies they invest in and control. And in this round-table, a small group of academics and practitioners address two main questions: How does private equity add value? And are there lessons for public companies in the success of private companies? According to the panelists, the answer to the first question appears to have changed somewhat over time. The consensus was that most of the value added by the LBO firms of the,80s was created during the initial structuring of the deals, a process described by Steve Kaplan as "financial and governance engineering," which includes not only aggressive use of leverage and powerful equity incentives for operating managements, but active oversight by a small, intensely interested board of directors. In the past ten years, however, these standard LBO features have been complemented by increased attention to "operational engineering," to the point where today's buyout firms feel obligated, like classic venture capitalists, to acquire and tout their own operating expertise. In response to the second of the two questions, Michael Jensen argues that much of the approach and benefits of private equity-particularly the adjustments of financial policies and stronger managerial incentives-can be replicated by public companies. And although some of these benefits have already been realized, much more remains to be done. Perhaps the biggest challenge, however, is finding a way to transfer to public companies the board-level expertise, incentives, and degree of engagement that characterize companies run by private equity investors. [source]

Buying and selling in today's market

JOURNAL OF CORPORATE ACCOUNTING & FINANCE, Issue 2 2005
Thomas A. Rosenbloom
M&A activity was up in 2004,compared to the two prior years. And there has been a large uptick in deals involving financial investors. But how does today's market change your strategy if you want to buy or sell a business? How are the deals being structured and negotiated? How long does it take to get the deal done? © 2005 Wiley Periodicals, Inc. [source]