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Marketing Plan For M & A

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Introduction
Pitching an M&A deal to shareholders is much easier for companies than organic growth, which not only increase operating costs, but also requires more time and resources to result in profitability. 2007 was the record year for M&A deals with an estimate volume of $4.2 trillion until this record was beaten last year. 2015 became the biggest year on record for M&A with an estimated $5 trillion in deals, which is more than the GDP of Australia, Mexico and India combined. Major deals were struck across a wide range of industries, most notably in technology, telecommunications and healthcare. This report discusses what is driving this aggressive growth by companies through M&A, a highlight 2015’s biggest deal and predicts what M&A …show more content…

The second important reason 2015 was a record year was the cheap debt financing and the fear that it might not last. Even though the Federal Reserve has recently increased the interest rates they are still low and unlikely to significantly increase corporate borrowing of impact M&A transactions negatively. Bankers played an active role by encouraging their clients to participate in M&A deals right away telling them it would be more expensive to do so three weeks or six month from later.

Finally, deals feed themselves, meaning that one company can be encouraged to participate in an M&A deal because their competitor has just closed a deal. This kind of competition and strive to be on top and sometimes just ego of corporate executives create a continuous flow of deals within the industry.

Biggest Deal in 2015 and Its Implications
Pfizer/Allergan merger is no ordinary deal; it’s a mega merger that would create the world’s largest drug maker. In November 2015, Pfizer announced its merger with Allergan for $160 billion making it the largest healthcare transaction ever and the second largest deal on record. The two companies will combine under the name of Pfizer PLC. Investment banks valued each Allergan share at $363.63. Stockholders of Allergan will receive 11.3 shares of Pfizer PLC for each of their hares while Pfizer stockholders 1 share for each of theirs.

This transaction allows the New York based Pfizer to move its tax address to Dublin, Ireland where

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