Exits Blog

• The IP Company Exit: Finding the Right Advisor
  Genesis Robotics set a world record, for a pre-revenue hardware company exit. This introductory video outlines the inception of Genesis Robotics and its path to the National Angel Capital Organization2018 Exit of the Year. Formed in 2015, Genesis Rob…
  - 77 days ago, 13 Jul 20, 11:13am -
• Virtual Companies Sell for More Money
  Virtual Companies Sell for More Money (and the Founders Keep More of It)  Online presentation to the Keiretsu Forum Northwest Chapter June 16, 2020. Virtual companies (where there is no physical head office and everyone works online) are worth more…
  - 79 days ago, 11 Jul 20, 11:00am -
• Virtual Companies Sell for More Money (and the Founders Keep More of It)
  Virtual Companies Sell for More Money (and the Founders Keep More of It) | Online presentation to the AngelForum June 18, 2020. | The founders of virtual companies (where there is no physical head office and everyone works online) take home more of t…
  - 91 days ago, 29 Jun 20, 1:52pm -
• How COVID-19 will change your job forever

  

  COVID-19 is forcing companies to do remote work. The emerging virtual company will disrupt traditional rival businesses. Strategic Exits has been saying for a while that virtual companies (those with no physical head office and everyone working remot…
  - 95 days ago, 25 Jun 20, 9:15pm -
• Companies must overcome established practices to reap the advantages of the new virtual workstyle

  

  Strategic Exits observed that virtual companies, ones with no physical presence where every employee works and communicates online, are attracting higher prices in the acquisition market. Few people noticed the slow emergence of these new companies.…
  - 25 May 20, 9:25pm -
• Virtual Companies Sell for More
  Virtual Company Exits Sell for More  Presentation to Discover Tectoria, a Showcase of Greater Victoria’s #1 Sector February 27, 2020. Virtual companies sell for more money in an exit transaction than conventional bricks and mortar companies.  Th…
  - 10 Mar 20, 11:03am -
• Virtual Companies are More Valuable
  Virtual Companies are More Valuable Presentation to the UBC Sauder School of Business January 20, 2020. Virtual companies attract higher valuation in an exit transaction than comparable bricks and mortar companies.  It may seem counter-intuitive. …
  - 10 Feb 20, 4:04am -
• Why selling your virtual company will make you rich

  

  Traditional businesses struggle to deal with technological advances, which is why virtual companies are worth more in a technology company exit. Strategic Exits noticed a few years ago that is was easier to sell a virtual company (with no head office…
  - 20 Jan 20, 9:13pm -
• NACO Awards 2018 Exit of the Year

  

  Strategic Exits was pleased to receive the Exit of the Year award at the 2018 World Angel Investment Summit for the Genesis Robotics transaction. We believe this is a world-record, high-valuation for a pre-revenue hardware exit. Our team guided the s…
  - 20 Oct 18, 11:37am -
• The Exit Coach
  “Exit Coaching” is a relatively new concept that I wish was more available in the market. An exit coach typically works with the CEO, or Chairman, on exit strategy, planning and exit team selection. The engagement may end when the M&A Advisor is…
  - 3 Sep 16, 4:18pm -

Financier Worldwide: M&A

FNO: Deals

• Buyout firms look to the public markets again

  

  Cash-rich private equity houses are getting more comfortable turning to public companies in Europe
  - 18 Oct 15, 7:00pm -
• Ardian picks up portfolio from Nordea

  

  The deal comes as the Paris-based private equity firm is raising $10 billion for its next secondaries fund
  - 15 Oct 15, 7:00pm -
• Swiss bank eyes private equity push

  

  Syz has partnered with private equity firm Ace & Company to find private equity deals
  - 14 Oct 15, 7:00pm -
• Sun takes shine to UK flower business

  

  Sun European Partners, which is best known for turnaround investments, snaps up supermarket flower supplier as it pushes into the mid-market
  - 13 Oct 15, 7:00pm -
• Many buyouts stumble in first year

  

  Optimistic business plans and deal fatigue can mean firms underperform in their first 12 months of private equity ownership
  - 12 Oct 15, 7:00pm -
• GHO inks maiden deal

  

  The healthcare-focused buyout firm has acquired majority stake in a DNA testing company after reaching a €400 million first close on its debut fund in June
  - 12 Oct 15, 7:00pm -
• Africa risks bubble in private equity market, report says

  

  Too many funds targeting a small number of companies capable of absorbing investment
  - 12 Oct 15, 7:00pm -
• Terra Firma gets more time to sell Odeon Cinemas

  

  Investors extended life of private equity fund which owns cinemas by a year
  - 12 Oct 15, 7:00pm -
• Dell’s value and the ‘falling knife’

  

  Dell and Silver Lake are to take EMC private in biggest pure-tech takeover ever
  - 12 Oct 15, 7:00pm -
• Meet the new owner of Russell Investments

  

  Financial News takes a look at TA Associates, the private equity firm that has bought the asset manager from the London Stock Exchange
  - 8 Oct 15, 7:00pm -

Fortune: Term Sheet

M & A Law Prof

• Prejudiced in the extreme...
  OK, the summer, if you can call being locked in one's home since March the "summer", is winding down and I'm starting to think about the school year again. Just in time for that, there's another of Rick Climan and...
  - 52 days ago, 7 Aug 20, 11:03am -
• CFP: AALS Transactional Law Section
  Here's the annual call for papers from the AALS Transactional Law Section: The AALS Section on Transactional Law and Skills is pleased to announce a program titled The New Public Interest in Private Markets: Transactional Innovation for Promoting Inc…
  - 17 Jun 20, 6:10pm -
• Walk Rights Tutorial
  What do to when you contract to buy a "Tesla" but end up with a "Chevy Volt"? Rick Climan and Keith Flaum offer up another in their mock negotiations. This one deals with walk rights in the accuracy of representations...
  - 22 Jan 20, 11:32am -
• The Shadow Pill is a Powerful Thing
  You've likely seen that Xerox is has been making sounds about acquiring HP. Last week HP rejected Xerox's unsolicited $33 billion to acquire it in a letter that characterized the offer as significantly undervaluing the company. While it left the...
  - 26 Nov 19, 2:39pm -
• More on corporate purpose
  Prof. Tsuk-Mitchell posted her new paper on corporate purpose, From Dodge to eBay: The Elusive Corporate Purpose. Here's the abstract: This article examines the history of the law of corporate purpose. I argue that the seemingly conflicting visions o…
  - 20 Nov 19, 9:05am -
• Boeing faces good faith claim
  Following on the heels of Marchand and Clovis Oncology, there now looks like a viable path for good faith claims - at least through a 23.1 motion to dismiss. Successful claims had been as rare as "Nessie", but in the...
  - 19 Nov 19, 8:24am -
• Consequential Damages and Buyer Power
  Here's another in a line of useful cartoons on merger agreement provisions - this time on carveouts for Consequential Damages. The cartoon also takes the opportunity to describe the "buyer power ratio" recently developed by the ABA Business Law Secti…
  - 23 Jul 19, 11:58am -
• Does Revlon Matter?
  A star-studded line-up of law profs got together to try to answer this question. Does Revlon Matter? An Empirical and Theoretical Study (Cain, Davidoff-Solomon, Griffith, and Jackson) recently posted to SSRN. Since it came down in 1986, many have tri…
  - 16 Jul 19, 11:29am -
• Griffith on Reps/Warranties Insurance
  Here's a new paper by Sean Griffith, Deal Insurance: Representation & Warranty Insurance in M&A Contracting: Abstract: Efficient contracting depends upon imposing risk on the party with superior access to information. Yet the parties in mergers and a…
  - 27 Jun 19, 10:50am -
• Residuals Clauses in NDAs
  Another in a series of very helpful cartoons from our friends at the Hogan Lovells M&A team on the use of 'residuals' clauses in nondisclosure agreements. The explanation of how they work here is very clear. Residuals clauses are just...
  - 25 Jun 19, 7:11am -

Morningstar: Leveraged Buyout

• High-Yield and Bank Loan Outlook: High Quality High-Yield in a Maturing Bull Market
  *** enter disclosure ***
  - 9 Jul 14, 4:58pm -
• The Orphaned Bull Market
  *** enter disclosure ***
  - 12 Jun 14, 2:47pm -
• Regulators Continue to Pressure Private Equity With Proposed Leverage Cap
  The Federal Reserve and the Office of the Comptroller of the Currency issued guidance last year that asked banks to avoid financing leveraged buyouts where debt on the company would be more than 6 times EBITDA. Longer repayment timelines and covenant…
  - 21 May 14, 5:00am -
• RLPC-Big European leveraged buyouts back on the agenda
  LONDON, Feb 24 (Reuters) - European leveraged debt financiers are lining up jumbo financing packages, including a 5 billion pound ($8.34 billion) loan and bond deal backing the potential sale of UK...
  - 24 Feb 14, 9:34am -
• RLPC-Sponsors push for lower equity levels in leveraged buyouts
  LONDON, Sept 16 (Reuters) - Equity contributions on large leveraged buyouts are falling to levels not seen since the height of the buyout boom in 2007 as borrowers achieve more aggressive terms on...
  - 16 Sep 13, 12:36pm -
• RLPC-Leveraged buyout debt mountain poses risk to UK -BOE
  LONDON, March 14 (Reuters) - The Bank of England warned that around 73 billion pounds ($109 billion) of loans that financed a boom in buyouts of British firms come due in the next five years, posing...
  - 14 Mar 13, 1:44pm -
• UPDATE 3-China's Focus Media agrees to $3.7 bln leveraged buyout
  * Agreement reached for $27.50 per American Depositary Share
  - 19 Dec 12, 7:34pm -
• Best Buy Founder Reportedly Lining Up Private Equity Backers, but Deal Far From Done
  On Tuesday, Reuters reported that Best Buy BBY founder Richard Schulze has entered into negotiations with at least four private equity sponsors in his potential bid to take the company private, including Apollo Global Management, Cerberus Capital Man…
  - 3 Oct 12, 4:55am -
• Family Dollar Surges on Trian Group's Offer to Acquire Firm for $55-$60 per Share
  After the market close Tuesday, Nelson Peltz's Trian Group, which currently has an 8% stake in Family Dollar FDO, announced an offer to purchase the remaining shares and take the firm private for about $7.6 billion, or $55-$60 per share, according to…
  - 16 Feb 11, 3:10am -
• Despite Lackluster 3Q and Increasing Commodity Costs, Wendy's/Arby's Shares Still Look Undervalued
  Wendy's/Arby's WEN third-quarter results were disappointing, as sales trends fell short of expectations. We now believe full-year sales will decline in the midsingle digits (versus our previous estimate of a low-single-digit decline). Commodity cost…
  - 12 Nov 10, 4:15am -

Reuters: Deals

• Snap's secrecy frustrates banks' pursuit of IPO glory

  

  (Reuters) - Some investment banks seeking to be added as underwriters to Snapchat owner Snap Inc's initial public offering registration document have been denied access to review it before it is made...
  - 1 Feb 17, 10:38pm -
• SK Innovation buys Dow Chemical's ethylene acrylic acid unit for $370 million

  

  SEOUL (Reuters) - South Korea's SK Innovation said on Thursday it will acquire Dow Chemical Co's ethylene acrylic acid (EAA) business for $370 million, a move that will expand its range of high...
  - 1 Feb 17, 8:36pm -
• Sports Direct in talks to bid for Bob's, Eastern Mountain Sports: sources

  

  (Reuters) - British sporting goods company Sports Direct International Plc is in talks to bid for Eastern Outfitters LLC, the parent of U.S. discount chain Bob's Stores and outdoor retailer Eastern...
  - 1 Feb 17, 6:44pm -
• Blackstone to invest $500 million in overhaul of Chicago's Willis Tower

  

  CHICAGO (Reuters) - Blackstone Group LP said on Wednesday it will invest $500 million to renovate Chicago's Willis Tower, upgrading amenities for tenants and adding new dining and entertainment space...
  - 1 Feb 17, 6:37pm -
• UniCredit prices rights issue at 38 percent discount

  

  MILAN (Reuters) - UniCredit priced its 13 billion-euro ($14 billion)rights issue at a 38 percent discount on Wednesday as it prepared to launch Italy's biggest ever share sale in a move to rebuild...
  - 1 Feb 17, 4:51pm -
• Ever-shorter U.S. bankruptcies have creditors scrambling

  

  WILMINGTON, Del. (Reuters) - Financially distressed companies that file for U.S. bankruptcy are emerging from court proceedings more quickly than ever, lowering legal costs but also forcing junior...
  - 1 Feb 17, 4:28pm -
• Generali shareholder CRT to decide on Intesa bid when moment comes

  

  TURIN (Reuters) - Generali shareholder CRT Foundation has no preconceptions over a possible bid for the Italian insurer by Intesa Sanpaolo and will make up its mind when and if it happens, the CRT...
  - 1 Feb 17, 11:19am -
• Swiss group MSC acquires Hanjin's stake in U.S. ports operator

  

  LONDON (Reuters) - A unit of Swiss shipping group MSC has bought a stake in U.S. ports operator Total Terminals International (TTI) from Hanjin , MSC said on Wednesday, having overcome objections...
  - 1 Feb 17, 10:54am -
• Capital hike needed for M&A where assets exceed $20 billion: Julius Baer CEO

  

  ZURICH (Reuters) - Julius Baer would need to raise capital from the market to fund acquisition of banks with assets under management of more than 20 billion Swiss francs ($20.15 billion), Chief...
  - 1 Feb 17, 9:57am -
• GE to sell entire stake in South Korea's Hyundai Card

  

  SEOUL (Reuters) - General Electric said on Wednesday it has agreed to sell its 43 percent stake in South Korean credit card firm Hyundai Card Co Ltd as the U.S. industrial giant continues to trim...
  - 1 Feb 17, 5:11am -

The Guardian: Mergers & Acquisitions

• newAsda takeover: TDR-backed EG Group in pole position for £6.5bn deal
  Billionaire owners of British petrol forecourts operator are Walmart’s preferred bidderThe billionaire owners of the British petrol forecourts operator EG Group have taken pole position in the race for control of Asda after being named the preferre…
  - 7 hours ago, 28 Sep 20, 1:48pm -
• newCaesars in advanced talks on £2.9bn William Hill takeover bid
  US hotel and entertainment company makes offer for one of UK’s biggest bookmakersNils Pratley: bet on one-horse race for William Hill takeoverThe operator of the Las Vegas casino Caesars Palace has confirmed it is in “advanced discussions” abou…
  - 11 hours ago, 28 Sep 20, 9:58am -
• Caesars approaches UK's William Hill over potential takeover
  One of the UK’s largest high street bookmakers at the centre of a possible US bidding warWilliam Hill, one of the UK’s largest and best-known high street bookmakers, is at the centre of a possible US bidding war that could mean it is bought by th…
  - 3 days ago, 25 Sep 20, 12:21pm -
• Private-equity group Apollo leads £6.5bn race to buy Asda
  Two bidders in running to snap up Walmart-owned chain as Lone Star drops outThe private-equity firm Apollo Global Management is thought to have edged into the lead in the £6.5bn bidding war for Asda after its rival Lone Star Funds dropped out.It is…
  - 6 days ago, 22 Sep 20, 9:15am -
• MPs to debate Arm Holdings $40bn sale despite Nvidia boss's guarantees
  Jensen Huang’s offer of legally binding guarantees to safeguard UK interests fail to allay doubtsMPs are to debate the controversial $40bn (£31bn) sale of the UK’s biggest tech company, Arm Holdings, after assurances from its US buyer failed to…
  - 10 days ago, 18 Sep 20, 11:05am -
• China could be stumbling block in Arm sale to Nvidia
  Article in Chinese state-backed Global Times calls for intervention in dealChina is emerging as a potential stumbling block to the controversial $40bn (£31bn) sale of the UK’s largest technology firm, Arm Holdings, as the British government wavers…
  - 12 days ago, 16 Sep 20, 1:36pm -
• Cambridge staff 'fobbed off' at meeting over Arm sale to Nvidia, says union
  
  - 13 days ago, 15 Sep 20, 2:00pm -
• Markets lifted by deal-making frenzy - as it happened
  A flurry of M&A activity sees Nvidia buy Arm for $40bn, Gilead acquire Immunomedics for $21bn, GardaWorld fight for G4S and TikTok team up with OracleBreaking: Takeover bid for troubled G4SIntroduction: Three important dealsTikTok: ByteDance ‘to pa…
  - 14 days ago, 14 Sep 20, 12:11pm -
• Bottom line for UK jobs is something needs to follow furlough scheme | Nils Pratley
  Not all jobs can be saved, but a sudden crunch of layoffs would have multiplying effectsTesco’s plan this week to create 16,000 jobs was a reminder that not every retail employer is shrinking its workforce, but the broader picture is unmistakable.…
  - 34 days ago, 25 Aug 20, 2:09pm -
• Retail veterans lining up £6.5bn rival private equity bids for Asda
  Either Rob Templeman or Paul Mason could possibly become chairman in a concluded dealTwo retail veterans are lining up to front rival £6.5bn private equity bids for Asda, the UK’s third largest supermarket.Rob Templeman, a former chief executive o…
  - 39 days ago, 20 Aug 20, 2:39pm -

WSJ: Deal Journal

• What to Watch From the Fed Wednesday
  In her first press conference as Fed chairwoman, Yellen will likely face questions on the continued reduction in bond purchases and the recent deterioration in economic conditions.
  - 18 Mar 14, 3:29pm -
• Kyle Bass Keen on Yellow Pages Co. — Sohn Conference
  By Emily GlazerThe yellow pages business isn't dead yet.That's according to Kyle Bass, principal of Dallas-based hedge fund Hayman Capital Management L.P., who focused his presentation at the Ira Sohn conference Wednesday on directories busin…
  - 8 May 13, 1:27pm -
• Record Number of Banks in One Deal as HK’s IPO Market Heats Up
  Hong Kong's IPO market is shifting into high gear this week with two billion-dollar offerings but one deal is crowded with a record number of banks who are being asked to do more to earn business.
  - 6 May 13, 2:48am -
• Aerosoles Shoe Chain Seeking Buyer or Partner
  The private-equity owner of the Aerosoles shoe chain is seeking a buyer or strategic partner for the company it created about 25 years ago from a cast-off unit of Kenneth Cole Productions Inc.
  - 2 May 13, 12:53pm -
• Dish Deal For Sprint May Leave T-Mobile On Hold
  Dish Network Corp.'s surprise $25.5 billion bid for Sprint Nextel Corp. may leave the No. 4 carrier T-Mobile with a tougher hand to play in a consolidating wireless market.
  - 15 Apr 13, 3:49pm -
• JPM Veteran Corio Joins Miller Buckfire
  Restructuring adviser Miller Buckfire & Co. is growing its bankruptcy and restructuring practice once again after prominent bankers departed about two years ago.
  - 15 Apr 13, 1:32pm -
• Dish vs Softbank: A Comparison of Sprint Offers
  Dish Network is now engaged in what is something of a tug-of-war with Japan’s Softbank over the future of Sprint. How their deals stack up.
  - 15 Apr 13, 11:29am -
• Ergen: Dish Is a Seinfeld Episode and Sprint Ties it Together
  If you were confused by all the moves Dish Network has been making in recent years, its vision should be coming clear now that it has bid for Sprint.
  - 15 Apr 13, 9:39am -
• Dealpolitik: Dish’s Audacious Topping Bid for Sprint Is No Slam Dunk
  Dish has made a stunning bid to buy Sprint for a cash-and -stock deal valuing Dish at $25.5 billion. Last year Softbank agreed to buy Sprint, also for a package of cash and stock. Dish claims its offer is worth 13% more.
  - 15 Apr 13, 9:25am -
• Citigroup Finally Releases Some Reserves
  To release or not to release, that has been the question for Citigroup when it comes to reserves held against roughly $92 billion of North American mortgages that it is trying to sell or wind down.
  - 15 Apr 13, 9:11am -