Frameworks for developing realistic synergy targets were debated during this session as the participants drilled into the interplay between term sheets and post-close operating dynamics, considered occasions for limited post-merger integration, contemplated variations in deals where there is a minority or venture investment, and considered approaches that may make a future divestiture feasible. 

Dawn White, Manager, M&A Integration - Corporate Development at Corning; Eileen Kamerick, Member, Board of Directors at AIG Funds, Associated Banc-Corp, Legg-Mason Closed-End Mutual Funds and Hochschild Mining; and Ken Kotylo, Vice President of Acquisitions & Corporate Development at Telephone and Data Systems (TDS) drilled into the interplay between term sheets and....

When economic downturns roil markets across the world and investors witness their returns diminish, dealmakers stand to benefit from downturns. Rather than retreating to the sidelines, dealmakers often reap significant returns from deals done in weak economies compared to returns from deals completed in strong market conditions.

This paper presents an analysis of the performance of strong- and weak-economy deals, comparing deals after two years from the time of announcement. Generally, the researchers distilled two key imperatives for....

In this conversation with publisher William Jefferson Black, Svetlana Vinokur from Federal Signal, explains the importance of the soft side of deal negotiations. She said, “For private company acquisitions, we find that it’s probably 70 percent price and 30 percent those intangibles including the culture, the people, and the legacy.  That one of the ways we differentiate our bids".   

This extensive discussion covers the role of M&A in the corporate strategy and offers unique some insights on...

In this informative paper, the authors review the final Committee on Foreign Investment in the United States (CFIUS) regulations and the expanded authority under Foreign Investment Risk Review Modernization Act (FIRRMA) to review foreign investments in U.S. companies. 

The final regulations impart significant authority to CFIUS and increased governmental scrutiny to a greater portion of international deals. 

The authors highlight new regulatory requirements and practices that M&A professionals should remain vigilant of including...

This session considered tax issues in due diligence, the tax benefits of various M&A structures, and looked at key tax provisions in acquisition agreements. 

The participants Lee Morlock, Esq., Partner at Kirkland & Ellis; Gene McCluskey, Vice President, Tax at CF Industries; and Michelle Baxter, Senior Director, Tax Planning & International Tax at Fortune Brands Home & Security offered perspective on recent tax developments that may impact transaction planning and explored the increasing use of...

Companies that regularly pursue moderately-sized transactions generally outperformed peers, according to research conducted by the authors of this paper, which studied overall shareholder returns versus transformational deals.

The research showed the most successful companies are placing “multiple bets” and being “nimble with [their capital]” while making several acquisitions even...

Drawing on a long-term research study into failed acquisition pursuits, the participants in this session considered a number of strategic and tactical issues that may cause a deal to fail to close.

The discussion with Sarah Arendsen, Senior Director, Corporate Development & Strategy at Kellogg Company; Hugo Dubovoy, Corporate Secretary and Chief M&A and Securities Counsel at Grainger; and Jared Sine, Chief Legal Officer & Secretary at Match Group looked at both internal and external factors at each stage of the deal process and offered perspective on specific actions to mitigate abandonment risks including the duration of diligence, design and triggers for breakup fees, clauses for material adverse changes, and methods for heading off...

To ensure the successful execution of a transaction for both SpinCo and RemainCo, both companies need to position the carveout to successfully operate as a stand-alone company.   

The authors of this paper look at the complex duties of care and loyalty that are unique to carveouts and consider the methods deal team should employ to structure this type of transaction, satisfy disclosure requirements, and ensure tax-free value creation through...

This session at the M&A Conference at the University of Chicago explored a range of innovative deal terms and methods for navigating regulatory challenges in domestic and cross-border deals. This session provided guidance on M&A provisions that anticipate protectionist views, antitrust challenges, and other regulatory reviews.

Chuck Webb, Senior Antitrust Attorney at FedEx; Gil Ohana, Senior Director, Antitrust and Competition at Cisco Systems; and Brendan Bowes, Associate General Counsel, Corporate, Securities and M&A at Archer Daniels Midland Company considered approaches for incorporating the risk of political and regulatory uncertainty into deal terms including 'best efforts' requirements, negotiating prospective antitrust remedies, and other...

Pro-sandbagging clauses are becoming an increasingly negotiated term in acquisition agreements designed to indemnify informed buyers.

A “pro-sandbagging” clause is a provision in the acquisition agreement preserving a buyer’s ability to bring a claim post-transaction even if they had knowledge of the issue prior to the closing.  This paper discusses the buyer’s and seller’s arguments regarding pro-sandbagging provisions in M&A agreements including...

This wide-ranging discussion explored a number of topics at the forefront of M&A strategy and deal structuring including innovative consideration structures, changing governance dynamics in both domestic and cross-border deals, navigating regulatory and competition review, challenges associated with taxable and tax free divestitures, and methods for approaching acquisitions with the shifting taxation frameworks in the US, among other areas. 

A lack of value-creation, regulatory hurdles, and political issues are the most common causes of abandoned mergers and acquisitions transactions, according to this report, which recommends approaches for deal transparency, mutual bargaining, and active political landscape monitoring.  The study analyzed 265 canceled deals, generally finding that the larger the transaction, the more likely it was to fail. 

While executives have limited control over some factors, M&A professionals can head off abandoned deal processes by improving.....

This session addressed the give-and-take between buyers and sellers in negotiating key provisions in M&A deals through an illustrative “mock” negotiation. The panelists focused, in particular, on pricing formulations in stock swaps and “earn-out” transactions. They also examined the growing tendency of M&A dealmakers to “negotiate by the numbers” – to rely (and perhaps over-rely) on widely proliferated market statistics in staking out their negotiating positions.