M&A Quarterly News
The value of announced global M&A has shown its strongest first half of 2010 since 2008. M&A activity reached US$1.1 tr, an increase of 9% over 2009. Private equity backed M&A was US$73.4bn, or 6.7%, of total activity. Energy and Power was the most active – with 19% of the announced deals globally and 30% of announced deals in the US. Goldman Sachs was number one in deals advised at $213.4bn. M&A activity involving Canadian companies increased 4.8% as compared to the first half of 2009 to US$66.9bn. Canadian activity based on the number of deals increased by 13.3% as compared to the equivalent period last year.
|
Some companies are taking a defensive position during these turbulent economic times. Others are taking an aggressive approach in order to maximize their future performance.
In both situations, a merger and acquisition (M&A) strategy can be a critical component in achieving organizational goals.
It is clear that companies that pursue M&A will be the leaders once the smoke from the economic downturn clears and "The Great Comeback" takes full effect.
Merging or acquiring a company involves the combining of assets, including infrastructure and brands, as well as gaining access to potentially new markets or customers.
By merging or leveraging the individual company's strengths, the operation that emerges can spur growth, increase market share, and when part of the acquisition strategy, initiate a company to a whole new business area. Regardless of the goals, every aspect of the supply chain is touched: Buy - Make - Move - Store - Sell.
Therefore, it is critical that the supply chain strategy is fully supportive of an organization's business strategy.
At Tompkins Associates, we focus on end-to-end supply chain solutions to provide: business and supply chain strategy analysis and assessments; distribution network, transportation, distribution center and material handling design and implementation services; and IT system assessment, selection and implementation support. We also address global needs in the area of sourcing and foreign market penetration strategies.
For over 30 years, Tompkins has served a wide range of industries, including automotive, consumer products, food and beverage, high technology, logistics service providers, pharmaceutical and medical products, and retail. See more details on these industries and our services.
Our global reach includes offices in the US, Canada, Europe and Asia. In Asia, we have unique capabilities built up over the last 20 years by Technomic Asia, a Tompkins International company located in Shanghai, China.
We help companies identify low cost production sources, set-up manufacturing capabilities in Asia, and identify distribution options to sell into Asian markets. Services include:
- Market research;
- Deal cultivation;
- Commercial, financial and legal due-diligence; and
- Assistance in deal closure and integration.
Technomic Asia understands how business gets done in China, and they are experienced at identifying the strong companies that are only talked about in small circles within the country.
Tompkins recommended approach to engaging is to begin before the acquisition is completed:
Due Diligence Before An Acquisition:
- Identify synergies with existing operations and areas of overlap that could warrant consolidation, with high-level estimate of investment costs and operational savings.
- Within the supply chain, identify strengths and any untapped potential for future value creation, while defining basic weaknesses and estimate potential future cost impacts.
- Outline operational cost reduction opportunities, time frames and risks.
First 100 Days of Ownership:
- Implement a consolidated supply chain strategy assessment and execution plan.
- Implement cost reduction opportunities identified in due diligence phase.
Achieving Supply Chain Excellence:
- Implement the integrated supply chain strategy plan.
- Continue to identify and implement cost reduction and customer care improvement plans.
From planning through implementation, Tompkins brings its clients measurable improvements in perfect alignment with their business strategy.
Download More About Tompkins Associates' Services for Private Equity Firms (PDF)
|
Download the
White Paper: Integrating Supply Chains from Business Combinations - Principles and Best Practices of Mergers and Acquisitions.
Download More About Tompkins Associates' Services for Private Equity Firms (PDF)
M&A Podcast Series:
Supply Chain Due Diligence and Mergers and Acquisitions: Click here for listening options and transcript
Four Keys to Success with Mergers and Acquisitions:
Click here for listening options and transcript
Creating Mergers and Acquisitions that Work and Meet Expectations: Click here for listening options and transcript
Blog posts:
Pharmaceutical Industry Rejuvenating through M&A
Are You an M&A Sinner? Repent and Heed the Lessons Learned!
Private equity firms make supply chains the star when adding value to their porfolio companies.
A caution on mergers and acquisitions and how they affect companies and their supply chains.
Resources:
Supply Chain Strategy Expert Reveals Three Fatal Mistakes of Recession Recovery
Download the new Executive Briefing: Sales, Inventory and Operations Planning: Crossing Organizational Boundaries
Caught Between the Tiger and the Dragon: A Business Novel by CEO Jim Tompkins is a modern-day fable that cleverly brings to life the ups and downs of business today. Find out more.
For the latest on this industry and more, subscribe to Supply Chain Edge, Tompkins Associates' monthly e-newsletter.
Benchmarking and Best Practices: How to Join the Supply Chain Consortium
Learn More About Tompkins
Associates
To learn more,
simply complete our Information
Request Form.
|
