Entries tagged with “m-a”
Articles
4 articles found for m-a:
- Purchase Price Allocations: What CFOs need to know to get it right?
Purchase Price Allocation (PPA) is an important component of a merger and acquisition transaction. It entails distribution of the value of the purchase consideration among various tangible and intangible assets (and liabilities) acquired from the target following the merger/acquisition. Residual purchase consideration, if any, is recorded as goodwill in the acquiring company’s books. A fairly complex process, it requires deep domain knowledge, understanding of the business plan, and expertise in intrinsic valuation to ensure all aspects of the analysis have been factored in accurately.
- 5 Reasons why CFOs Like (and Dislike) Goodwill
Purchase price allocation (PPA) and goodwill assessment is a must-have for any acquirer following an M&A deal to report the correct value of the assets on its financials. Assessing goodwill has always been a complex process and could create a fair amount of issues if not handled correctly. CFOs usually have a love-hate relationship with goodwill as it relates to their specific situation. The article provides a brief overview of the two sides of a goodwill assessment.
- US Pet Food Industry on the Rise
Pet ownership increased during lockdown when people were confined to their homes. Pet humanization has led to owners treating pets as part of their family. Owners are increasingly concerned about their pets’ health and nutrition and are looking for high quality and nutrient-rich food products. Pet food manufactures have been quick to tap into this rising demand to develop organic, natural, and high nutrition products. According to the American Pet Products Association, pet food sales increased 19.3% year-on-year to USD123.6 billion in 2021. Large pet food and treat manufacturers are expanding their production lines to meet growing demand. The pet food industry has shown resilience during the recent economic downturn and is expected to grow further.
- Cell and Gene Therapy – The Next Frontier in Lifesciences
In this era of rapid scientific and technological advancements, we are at the precipice of a healthcare revolution. Cell and Gene therapy (CGT), pioneering treatments that leverage our own biology, are poised to challenge traditional healthcare frameworks. CGT has been witnessing an expanding total addressable market and is expected to grow exponentially. However, the potential gains are not merely financial. Investments in this growing field also help propel the momentum of scientific and medical progress, funding vital research that brings us closer to a more efficient, personalized, and holistic healthcare future. This article attempts to present the current and future landscape of CGT, with a focus on the clinical pipeline evolution, strategic collaborations, and financing and investment environment globally.
Special Reports
8 special reports found for m-a:
- Global M&A - Q3 2022
In the third quarter, dealmakers’ appetite for M&A fell even further. The number of global M&A transactions declined for the third consecutive quarter in Q3 2022, as the rising interest rates, continued inflation, and impending recession posed challenges for dealmakers. The total deal value was US$ 573 billion in Q3 2022, a 42% decrease from the previous quarter’s total of US$ 981 billion.
Despite the general slowdown in the M&A market, investors increased stakes in various areas, including technology, real estate, industrials, and healthcare. The amount of M&A activity this year has been considerably less than anticipated. Inflation, global unrest, and rising interest rates are some factors that slowed M&A activity this year. However, these factors may present opportunities for dealmakers in 2023, including distressed M&A and ESG opportunities, with the energy and technology sectors expected to dominate in the near future.
- M&A in Artificial Intelligence | Q1 2023
Artificial intelligence has been a buzzing term for quite some time now. The sentiment continued as we entered the first quarter of 2023, with the M&A market recording strong activity in AI. Although the number of AI technology deals slid from 200 in Q1 2022 to 186 in Q1 2023, the total deal value in Q1 2023 was US$12.7 billion compared with US$4.6 billion in Q1 2022. AI funding fell 43% QoQ to US$5.4 billion in 2023, the lowest quarterly total since Q1 2018. Meanwhile, deals slid for the fourth quarter in a row to 554, the lowest tally since Q4 2017. AI unicorn births remained stagnant at five compared with that in the previous quarter. However, AI advancements are expected to benefit investors across a diverse range of technical and creative fields. Several technology companies have developed AI-powered chatbots and increased collaborations and partnerships to integrate and bolster AI capabilities. Going forward, tech giants are expected to actively undertake M&A activities in the AI space.
- M&A in Aerospace and Defense | Q3 2023
The aerospace and defense (A&D) industry is highly competitive, with a limited number of major players. Consequently, mergers and acquisitions (M&A) activity in the sector is low, but when deals happen, they are often large and transformative. Recently, there has been a trend toward consolidation in the A&D sector, as companies look to gain scale and market share. This has been driven by several factors, including the rising cost of developing new technologies, the increasing complexity of defense programs, and the growing importance of global supply chains. M&A activity in the A&D sector is expected to remain strong in 2024, as companies look to consolidate their positions and gain access to new technologies and markets. Due to increasing importance of artificial intelligence and other emerging technologies in A&D, companies are looking for targets with expertise in these technologies to develop new products and services and improve their operational efficiency. Overall, the outlook for M&A in the A&D sector in 2024 is positive, as it can be a powerful tool for companies to achieve their strategic goals.
- Growing Consolidation in the US Oil & Gas Sector
- Broadcom Inc. acquires VMware
Broadcom (AVGO.O) announced its intention to acquire cloud-computing firm VMware (VMW.N) for $61 billion, along with assuming an additional $8 billion of the company's debt in May 2022. On November 22, 2023, Broadcom confirmed the completion of the acquisition. This strategic move positions Broadcom as a significant player in the infrastructure management software market.
- HealthTech Decoded 1H22
HealthTech funding cools down in 1H22, while the number of investments reached new heights as new subsectors with innovative solutions emerged.
Investment momentum in connected care continues to be on the lead for VC investors, as telehealth and patient monitoring are among the top trends of 2022. COVID-19 forced healthcare professionals to deliver care to patients from the remotest corners of the world.
Big software and tech giants such as Microsoft, Amazon, Google, and Oracle make a concerted push toward healthcare. On June 8, 2022, Oracle (NYS: ORCL) acquired Cerner for approximately USD 28.3 billion, the largest M&A deal in the history of HealthTech. The acquisition may be enable Oracle to capitalize on the emerging cloud opportunity in the healthcare sector.
Global M&A deals decreased in the first six months of 2022 as the world’s major economies raised interest rate to tame runaway inflation, grappled with the conflict in Ukraine, and faced a bearish stock market. 2Q22 has recorded the lowest quarterly number of deals in the last four years as dealmakers fretted about the growing probability of a recession.
In this edition of HealthTech Decoded, we bring you insights into the sector’s performance after the extended pandemic outbreak as well as notable funding trends across the globe in the HealthTech space in 1H22.
- Portfolio Transformation in Chemicals Industry
Over the recent past, chemical manufacturers have faced significant headwinds in the form of volatility in feedstock prices, changing needs across end-use markets, tightening of regulations, etc. To counter these headwinds, market leaders have been proactively reviewing their portfolios. Players who have successfully transitioned to more specialized/focused portfolios have demonstrated significant resilience to the headwinds and often delivered relatively high shareholder value over the long term. This special report gives detailed insights into the emergence of portfolio restructuring as a preferred strategic option for market leaders in the chemicals industry.
- Fintech Decoded: 1H22
Fintech deal activity in 1H22 slowed down due to the macroeconomic headwinds, with subsectors such as Blockchain/Crypto gaining importance over Payments+ owing to increased investor appetite for BNPL, DeFi & NFTs.
The transition to cashless payments and online banking behavior, developed during the pandemic and has been growing ever since. It is expected to boost investment in neo and digital banks, promoting financial inclusion in 1H22.
The year 2022 is witnessing a continued focus on blockchain in terms of investment and retail adoption, as investors begin to recognize its potential.
Deal activity in 1H22 was in-line with the pre-COVID level of 2019. VC funding in fintech contracted significantly by 86% in 1H22 from a sharp rise in 2021. Meanwhile, the PE and M&A space recorded a decline in financing in 1H22 of about 55% and 58%, respectively, compared to 2021.
In this edition of Fintech Decoded, we bring you insights into the sector’s performance following the pandemic, along with notable funding trends across the globe in 1H22.