Search results for the "Corporate & Finance" category
May 15, 2012 - by Debbie Stephenson
Recent technology developments and trends, most notably cloud computing and the emergence of mobile devices in the workforce, is raising the expectations from end users for new levels of service from enterprise IT. The ‘consumerization’ of IT has led to users demanding not only the sophisticated technologies that they enjoy on their own devices, but also the flexibility and on-demand convenience to which they have grown accustomed to with app stores. That’s why many big enterprises are now leveraging the popularity of app-stores within their business.
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May 1, 2012 - by Michael Poole
We often highlight articles from our customers that would be interesting and relevant to the Firmex community. Enjoy this in-depth report by Michael Poole of PCE Investment Banking, on the state of the M&A markets for Q1 2012.
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Apr 12, 2012 - by Debbie Stephenson
Disappointing results from a recent inspection report by the Canadian Public Accountability Board (CPAB) are driving audit firms to find new solutions that challenge the traditional audit process.
The CPAB, which oversees the work of Canadian audit firms, said it was “disappointed” in the progress being made on improving audit quality. Its concerns were directed toward both smaller regional firms and the “Big Four” national accounting firms, which audit about 94% of Canada’s publicly traded companies by market size. CPAB found deficiencies between 20 -26% of the audit files it reviewed at the Big Four firms and 47% of the audit files it reviewed from 10 smaller firms.
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Mar 26, 2012 - by Phil Adrien
In our 2012 M&A market outlook we predicted a positive recovery for M&A, based largely on 2H 2011 deal flow. Much of this activity is currently being generated in Canada, while the rest of the market seems to be slowing.
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Mar 12, 2012 - by Phil Adrien
Exits were strong in 2011, and this trend should carry forward in 2012 with exits expected to achieve near highs of the past decade. According to Pitch Book and Grant Thornton’s 2012 PE Exit Activity Report, Private Equity ¬firms sold or took public, 213 U.S. companies during the second half of 2011 alone. This brought the 2011 exit count to 420 totaling $104 billion, only a slight difference from 2010 totals of 434 deals and $106 billion. With Private Equity seeing a reduction in capital raises, they will need to exit businesses quickly to see a profit. With more firms actively looking to close exit opportunities, the competition for acquirers is on the rise.
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Dec 9, 2011 - by Joel Lessem
Today we enjoyed our fourth collaborative Master Class with Andrew J. Sherman, author and Partner at Jones Day. He led us through his best practices to ensure success in post-close integration with a Buy-Side perspective of M&A.
Andrew spoke to the challenges in post-close integration. Citing at KPMG survey, Sherman agreed that cultural and people issues present the biggest challenge during the post deal period. He also referenced specific data points related to post-deal integration, citing a Deloitte survey Sherman highlighted that although the desired outcome of integration may be to rapidly capture cost & revenue, synergies were not achieved in 70% of cases.
The news wasn't all bad though, Andrew provided tips, tricks and checklists for retaining key employees, overcoming cultural issues, establishing a transition team and more.
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Nov 18, 2011 - by Joel Lessem
Today, we once again enjoyed our third collaborative Master Class with Andrew J. Sherman, author and Partner at Jones Day. He led us through his due diligence best practices and pitfalls with a Buy-Side perspective of M&A.
Andrew likened the due diligence process in M&A to dating, "Some people like to disclose everything on a first date, most of us reveal information about ourselves on a phased basis as we get to know the other party. The due diligence process in M&A is more akin to that, as long as you're not witholding information that would change the nature of the transaction." Transparency and openness are keys to conducting successful due diligence. Sherman added that, "Those who are successful in due diligence leave their ego at the door."
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Oct 20, 2011 - by Joel Lessem
Today, we once again enjoyed an enthusiastic and collaborative session with Andrew J. Sherman, author and Partner at Jones Day. He took us through the Buy-Side perspective of M&A and focused on how to qualify your seller and uncover hidden value.
Building on his weather forecast in Part 1 of the series, Andrew alluded to the clouds parting for M&A in 2012. Using a bullhorn he gave the call to action to Buyers, “Attention K-mart shoppers – deals to be had!” Companies are sitting on $2.5 trillion and this value will be flowing back into the markets. Buyers need to be prepared to capitalize on the buyer’s market that currently exists but not to rush into acquisitions. Vigilant due diligence is crucial.
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Aug 4, 2011 - by Joel Lessem
One of my favourite books is Billion Dollar Lessons by Paul Carroll and Chunka Mui. The book is distilled from researching 2,500 significant business failures. The authors describe:
The extent of the failures was stunning. Since 1981, 423 U.S. companies with assets of more than $500 million filed for bankruptcy. Their combined assets at the time of their bankruptcy filings totaled more than $1.5 trillion....Their combined annual revenue was almost $830 billion.
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Jul 7, 2011 - by István Préda
Cat and mouse warranties
The extent and scope of warranties is one of the trickiest negotiation areas in selling or buying a private company. The buyer wants to make sure that the financial statements were true and fair and it had received all relevant information for his investment decision on closing, while the seller is afraid warranties will allow the buyer to claw back part of the purchase price after the deal. The most important areas to seek warranties are: the valuation of assets, off balance sheet items, related party transactions, pending litigations and potential tax liabilities.
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