in 2014, we have witnessed an unprecedented global mergers and acquisitions, particularly in the field of science and technology. Last year, aimed at technology companies and the world rose to 55% of the total and 购量 购量, reached its highest level since the new millennium. This year, broke through the $100 billion deal volume in the field of science and technology.
now, we have seen WhatsApp, Nest, Beats, Oculus VR and Waze large acquisitions that grabs an eye. They are the founders of the mouth water prey, is short-sighted entrepreneurs propaganda-is hope lighthouse. However, when these large deals immersed in the media publicity, silicon valley has opened the hot spot of science and technology in the field of small market. Recently, the tech world there are many mergers and acquisitions, ranging in size from small acquisitions to super deal.
the spell of mergers and acquisitions by the mobile wave drive, extended to the field of mobile Internet. In the past year, the mobile Internet deal volume of $47 billion, mergers and acquisitions is the previous five times. According to the Digi Capital “report, remove the WhatsApp deal, the largest remaining mobile mergers and acquisitions, 50% is a game, text, music, and diet.
Marie mikel (Mary Meeker) the latest Internet trends, according to a report from 2012 to 2014 in May, Facebook has created a $24 billion deal volume, Google and alibaba also not to be outdone, with $6 billion and $5 billion respectively traded followed suit. The following diagram shows the major U.S. technology deals over the past 12 months.
so, what is driving the m&a frenzy of large technology buyers? Here are a few key catalyst: stock price is high, the more cash reserves, dividend payments and investors, and talent acquisition. These powerful factors created a highly competitive environment, the merger and acquisition to the limit. Big technology companies are trying to snap up related to areas of the company, especially the IP and user acquisition.
although the m&a frenzy caused this, but many companies seem to be still in pain feeling, can’t find the key variables in the value equation. When the company is in the hidden trouble of takeover, most ceos are not dry. Even though they know the ins and outs of venture capital to improve but in more cases, they do not understand how the buy-out industry merger and valuation.
if you want to master some basic knowledge of the m&a industry rapidly, this article can be a shortcut to provide some reference for you. how to calculate value acquisitions? Talent acquisition value + investor returns on capital +=total valuations at a premium.
the following is a detailed analysis of each variable.
talent acquisition : this pattern is very common in today’s business areas, it is to point to, some big enterprises have acquired a start-up, but their real purpose is not the whole startup, and may only be a team in the company or employees. According to the current price of silicon valley, in four to five years, each engineers estimate at $1 million to $2 million. Absorb the engineer depending on the personal interview.
in this case, the non-engineering asset class usually will not be included, unless it is in line with local market demand, has a special talent or key management personnel. If is a subsidiary of acquisition, then the entire human resources staff are likely to remain the same. In both cases, the company will provide a list, including every four to five years of total wages (legal effective during the period of stock and options).
investor returns on capital: usually pay at least 100%, investors get up funds in the first place.
in the calculation of the following variables must be considered when the right amount of space at a premium. IP/patent investment value and the value creation, positive cash flow business value and competitive disadvantage value (excluding competition potential acquisition targets).
offer hope to be acquired company CEO’s six tips
when opportunity knocks, you expect have already get ready for your arrival. It’s like exciting season progresses, you’d better have good ready to warm up and stretch body, tie your shoes and tie up the helmet. Want to take a carefully prepared victory? Please click the following rules.
first, do a objective self worth investigating. Understand why the company evaluate your, how to evaluate you. Whether they want to in the competition has been laid hands on him before the value of you? They want your IP? Whether they will welcome talented team? Mining the answers to these questions will help you to clear their positioning in the negotiation.
the second, to establish a reliable solution best option (negotiating). You should set up a “stingy” scheme. How to do this? When in the market to buy the company as much as you can get quotation and then to bargain. This helps to fully using the classic market bidding principle: the more bidders, the higher the asset prices.
third, find a internal executive consultant. Cooperating with the correct internal management consultant (or contact with the top) is an important factor to build plan. Policy makers, especially for mergers and acquisitions line, focused on the upper most buy-out firms. If you are not exposed to such people, then go find a consultant who deal with these people.
4, to understand the basis of capital and assets structure. Must to clear up the different trading capital and capital structure, for example, early trading, stock trading and cash and stock options timetable.
5, familiar with all kinds of mergers and acquisitions. We understand that m&a method with companies interested in mergers and acquisitions for different reasons. For example, if a company is interested in talent acquisition, the simplest method is yao dissolution of the company’s employees and close the different departments of the company. This strategy can reduce the risk of debt and, at the same time reduce costs on both sides of the law. If they like the IP, the target company to both maintain complete structure (for those who want to continue to run) and dig out the IP, will use subtle way. The bottom line is: to buy a company can have a lot of motivation, find a motive to push the key to the deal and turn it into one of your strengths.
6, keep a senior independent business lawyer. Mergers and acquisitions in this line, hard to avoid need a lawyer. When you begin to ask a lawyer, make sure you find longer than cooperation mergers and restructuring. Believe me, even if the pay is worth it. No professional acquisition of lawyers, many key will make mistakes, critical moment off the chain can lead to disaster. But don’t worry too much about the billing rate; Some independent lawyers charge less than standard law firm billing, but the service is the first-class, is “cheap”.