Tag Archives: Mergers & Acquisitions

From left: Andrew Christensen, Brian Moll, Sanat Patel, Richard Skufza, Lena Dalbey and Joe McGovern.

LaneTerralever merger earns Deal of the Year

The merger between E.B. Lane and Terralever into LaneTerralever was recognized Thursday as the 2013 Deal of the Year by the Association for Corporate Growth-Arizona Chapter (ACG).

The award was presented at the organization’s Southwest Mergers & Acquisitions Conference, which concluded Thursday at the Fairmont Scottsdale Princess Resort.

E.B. Lane had a 50-year track record as one of the Valley’s top advertising and public relations agencies, while Terralever had developed a strong reputation and client base since its founding in 2002. Both were looking for strategic partnerships that would enable further growth and expansion. As they now put it, they were “Creating the Agency of the Future — Today” through the transaction.

“We congratulate the team involved in the merger, as well as the entire LaneTerralever team, on this transaction and what it has meant for this dynamic new company’s growth,” said Sanat Patel, President of the ACG-Arizona Chapter Board of Directors. “This is the kind of transaction that helps fuel Arizona’s economy and is at the heart of what ACG-Arizona is working to promote in our state.”

The LaneTerralever merger was nominated by JDB Capital Partners LLC, the investment banking firm advising on the transaction. The law firms of Bryan Cave LLP and Polsinelli PC, as well as the accounting firms Wallace Plese + Dreher and Eide Bailly, were involved in making the merger a reality.

The other two finalists were:
— Recapitalization of QK, Inc. by Cave Creek Capital, Stewart Capital and Seacoast Capital, nominated by Greene Holcomb & Fisher LLC
— Sale of the Pinto Valley Copper mining and milling operations and related railroad company, nominated by Polsinelli PC

The Deal of the Year Award is a coveted honor given annually to a company or private equity firm in recognition of their accomplishments in Arizona’s mergers and acquisitions or capital markets marketplace. The award recognizes a deal/transaction in the Arizona marketplace involving established businesses with between $10 and $750 million of revenue that closed in the 2013 calendar year.

Endeavour Capital’s purchase of Arizona Nutritional Supplements was recognized as the 2012 Deal of the Year last year.

Founded in 1954, the Association for Corporate Growth (ACG) is a global association for professionals involved in corporate growth, corporate development, and mergers and acquisitions. Today ACG stands at more than 14,000 members from corporations, private equity, finance, and professional service firms representing Fortune 500, Fortune 1000, FTSE 100, and mid-market companies in 56 chapters in North America, Europe, and Asia. The Arizona chapter of ACG includes representatives from corporate investment and private equity groups, financiers, venture capitalists and supporting consultant services. For more information, visit www.acg.org/arizona.

Facebook’s $19B for WhatsApp was only the 4th biggest tech buyout in 2014

In 2005, Rupert Murdoch, a veteran business mogul with a solid reputation in creating empires out of companies was so sure of social media’s future that he bought MySpace for a whopping $580 million.  He couldn’t be any more right… and wrong. Social media was (and is) the future, but the future belongs to Facebook, a college dorm startup founded just a year before the MySpace deal. Years later, Murdoch would sell MySpace for $35 million – merely 6% of its acquisition price.

Such is the unpredictable nature of mergers & acquisitions, and that magnitude increases tenfold for technology companies whose hot products today can easily turn sour the next morning. In our latest infographic, we review the top technology mergers & acquisitions, their best bets and not-so good outcomes.

In the report After the Acquisition by Ernst & Young, the consulting firm identified “retaining key employees” as one of six major areas that make a successful M&A. True to form, many of these technology M&As targeted talents to expand their business.

When Google bought Android, Inc. for $50 million in 2005, it was after the top engineering talents like Andy Rubin, Andy McFadden, Richard Miner and Chris White. This team would successfully put Android at the leading mobile OS position today.

Similarly, an ailing Apple in the nineties bought NeXT for $429 million (by far its biggest purchase), mainly to bring back Steve Jobs at the helm of Apple. Jobs, as we know, was booted out of the company he founded in a boardroom power struggle drama in 1985.

But M&As are mostly about getting a bigger slice of the market. Facebook bought Instagram for $1 billion, an app the former can easily develop off its own photo sharing tool. But Facebook sees the bigger picture, to be precise,  Instagram’s 10 million new users in just a year. It’s one of the top three fastest growing social networks today (the others are Pinterest and Tumblr). As for its recent purchase of WhatsApp—$19 billion or 13 times Facebook’s entire 2013 income—the world awaits if it’s a good or bad buy.

An M&A can even be a losing revenue proposition as long as the acquiring company gets that big slice. Microsoft bought Skype in 2011 for $8.5 billion, never mind that Skype was not making profits. The software giant just needed a voIP to shove in the face of Google Voice and Apple’s FaceTime. But was it a good buy?

See the infographic below for more details on the top tech mergers and acquisitions.

company-acquisitions-infographic

Two attorneys become shareholders

25 Squire Sanders attorneys earn distinction

Squire Sanders announced that 25 of its lawyers were recognized in the 2013 edition of Southwest Super Lawyers, among them are:

* George Brandon, Business Litigation
* Brian Cabianca, Business Litigation, Intellectual Property Litigation, Class Action/Mass Torts
* D. Lewis Clark, Jr., Employment & Labor, Employment Litigation: Defense
* Joseph M. Crabb, Securities & Corporate Finance, Mergers & Acquisitions, Business/Corporate
* Peter W. Culp, Environmental, Energy & Natural Resources
* Craig D. Hansen, Bankruptcy & Creditor/Debtor Rights
* Charles E. James, Jr., Bonds/Government Finance
* Christopher D. Johnson, Mergers & Acquisitions, Securities & Corporate Finance, Bankruptcy & Creditor/Debtor Rights
* DavidW. Kreutzberg, Real Estate, Business/Corporate, Land Use/Zoning
* Jordan A. Kroop, Bankruptcy & Creditor/Debtor Rights
* Steven L. Lisker, Real Estate
* Daniel Pasternak, Employment & Labor
* Timothy E. Pickrell, Mergers & Acquisitions
* Frank M Placenti, Securities & Corporate Finance, Mergers & Acquisitions, Corporate Governance & Compliance
* Lawrence J. Rosenfeld, Employment & Labor, Health Care
* Thomas J. Salerno, Bankruptcy & Creditor/Debtor Rights, International, Alternative Dispute Resolution
* Christopher D. Thomas, Environmental, Environmental Litigation

Rising Stars Include:

* Jamie Daddona Brennan, Business/Corporate, Securities & Corporate Finance
* Jennifer R. Cosper, Bonds/Government Finance
* Gregory A. Davis, General Litigation
* Matthew M. Holman, Securities & Corporate Finance, Mergers & Acquisitions, Business/Corporate
* Laura Lawless Robertson, Employment & Labor
* Matthew Ohre, Business Litigation
* Sara K. Regan, Business Litigation
* Jacob B. Smith, Tax, Business/Corporate