Category: Mergers & Acquisitions
Mergers and Acquisitions: U.S.
Currently, about 19% of the overall market has an elevated probability of being involved in some level of merger, acquisition or breakup activity. Half of the activity is expected in SmallCap alone, 10.1%, and the other half split between MidCap at 4.7% and LargeCap at 3.9%.
Mergers & Acquisitions: U.S.
Over the past several decades we have watched a dramatic increase in mergers and acquisitions. We wondered if there was a stock based valuation rationale behind mergers that indicated the probability that a company would be involved in a merger within a reasonable period of time. While we do not have a clear signal that our valuation model is a crystal ball, we have noticed a higher frequency of M&A activity amongst stocks we have categorized as A+ in the Merger, Acquisition, Buyout Factor (MAB) calculation.
Merger Consideration Brief (November 2017)
Over the past several decades we have watched a dramatic increase in the number of mergers and acquisitions that have taken place throughout all industries. We wondered if there was a stock based valuation rationale behind mergers that indicated the probability that a company would be involved in a merger within a reasonable period of time. While we do not have a clear signal that our valuation model is a crystal ball, we have noticed a higher frequency of M&A activity amongst stocks we have categorized as A+ in the Merger, Acquisition, Buyout Factor (MAB) calculation.
Merger Consideration Brief (4th Quarter 2017)
Hunters and Hunted for the 4th Quarter of 2017
United Technologies Maybe Chasing Rockwell Collins
United Technologies is possibly offering to acquire Rockwell Collins for $140/share, a price that reflects 137.0% Fair Value (Fv). Rockwell Collins is currently trading at 128.2% Fv. We are doubtful this acquisition will produce favorable financial results long term for the company. We believe they may be chasing the higher margins from Rockwell Collins in hopes it will benefit their income statement very quickly. Longer term they may be surprised as to how difficult it will be to retain Rockwell Collins creative talent in a larger United Rockwell.