Is M&A still a male dominated industry? Back in its 2011 article, Reuters referred to M&A as a “man’s game”. They found that only 15% of executives and senior level managers in US investment banking and securities dealing industries were women. A 2011 survey found that 83% of female finance executives perceived the glass-ceiling to be a very real and prevalent factor preventing them from moving forward. Further there were a small number of women graduating from business schools choosing to enter the financing and accounting market – nearly half the number of the men in the recruitment process.… Continue Reading
On July 12, 2017, the Bank of Canada raised its overnight lending rate to 0.75 per cent from 0.5 per cent. This was the first such increase in almost 7 years, after a prolonged policy of fiscal stimulus in the wake of the economic recession.
While the need for an interest rate hike in the current economic climate is certainly contentious, the fundamental effects of rising interest rates are well known. At a macro level, borrowing and spending cash becomes more expensive, and saving becomes relatively attractive. The effect of an interest rate hike on M&A activity … Continue Reading
According to a recent MergerMarket Group report, the first 11 months of 2015 saw global deal value reach USD $3.88tn, surpassing global deal value for the entirety of 2014. At a glance, it seems the last month of 2015 actually saw an increase in the growth of deal value with the closing of four deals, each valued at over USD $50bn. A major pharmaceutical takeover deal worth a reported USD $183bn served to cap of a year touted by the Wall Street Journal as “the Biggest M&A Year Ever.”
By November’s end, Technology, Media, & Telecoms (TMT) … Continue Reading
The professional sports industry is booming and acquirers are taking note. According to A.T. Kearney, total global revenue from sporting event tickets, media rights and sponsorships alone is approximately $80 billion USD, has been increasing annually, and is expected to continue increasing over the upcoming years. Forbes notes that the average NBA team is currently valued at $1.1 billion, a spike of 74% over last year, while the Los Angeles Lakers currently holds the record of highest value at $2.6 billion.
With this promising outlook, it is not surprising that acquirers are recognizing the potential value to be unlocked … Continue Reading
Forbes contributor, Michael Schwerdtfeger, recently commented that “2014’s dynamic merger & acquisition market is galloping right into 2015.” Citing various sources, he notes that 2014 was the strongest year for deal-making since at least 2008, with a 47% increase over last year. The overall value of deals in North America grew by nearly 55% due to a number of market factors, including large cash stockpiles, cheap financing, and a trend for large corporations to focus on external growth as opposed to increasing revenue with current business divisions. Schwerdtfeger highlights the three industries that saw the greatest growth: telecommunications and media, … Continue Reading