Print
E-MailThis post on a recent study of the characteristics of private equity acquisitions of public companies comes to us from Keith Flaum of Cooley Godward Kronish.
Earlier this month, the Committee on Negotiated Acquisitions of the American Bar Association’s Section of Business Law released the 2007 Private Equity Buyer/Public Target M&A Deal Points Study. I am the Chair of the Committee’s Market Trends Subcommittee which, in association with the Private Equity M&A Subcommittee, compiled the Study.
The Study examines key deal points in financial sponsor-backed acquisitions of publicly traded companies announced in 2005 and 2006. Among the many interesting findings of the Study is that, for transactions announced in 2006, more than three-fourths of the acquisition agreements in the Study did not contain a financing condition.
My colleague Rick Climan, former Chair of the Committee on Negotiated Acquisitions, acted as special advisor on this project. Wilson Chu and Larry Glasgow, the former co-chairs of the M&A Market Trends Subcommittee–and more than 15 M&A lawyers from major law firms across North America–assisted in its compilation.
Later this year, the Committee on Negotiated Acquisitions will be releasing a Strategic Buyer/Public Target Deal Points Study. That Study will analyze more than 200 agreements in the 2005 to 2006 timeframe involving acquisitions of publicly traded companies by strategic (i.e., non-financial) buyers. It will be very interesting to compare the results of these two studies.
The full Study is available here.
