Due diligence Tag

BTD  is pleased to announce a new in-house training workshop specifically designed for M&A/Corporate Development executives and Business Unit leaders. This new 1-day in-house session brings together leaders from both sides of the traditional 'deal divide' within your organisation to review and discuss ways to help bridge the...

[caption id="attachment_257" align="alignleft" width="150"]Good v bad acquisitions Honeywell - serial acquirer?[/caption] An interesting piece caught my eye: it's about Honeywell's approach to acquisition (read it here). They are evaluating about 100 potential acquisition targets and one of their criteria is how easy they will be to integrate. Businesses that undergo multiple acquisitions are often called ‘serial acquirers’, which has both good and bad connotations.   Good, in that if done properly it can be a strategic deployment of capital in order to obtain capability, market reach and process performance that all enhance value and shareholder confidence. Definitely not to be sneezed at.  Getting it wrong, on the other hand, can lead to a destruction of all this and the CEO’s career to boot.

Unpredictability in M&AIn a recent editorial by Acquisitions Daily, this item caught our eye: Write-offs to hit big mining deals.  Following the US$14bn loss on acquisitions that cost Rio Tinto boss Tom Albanese his job last week, further write downs on investments at the other largest mining companies in the weeks ahead seem sure to curb strategic M&A activity in the sector in the near-to-medium term. As the prices of base metals continue to fall while costs continue to rise, Rio’s leading rivals will be forced to follow its example over the next two months – with nickel and aluminium assets particularly vulnerable.