Middle Market M&A: Ready to Increase?

Fox business reports that mid-sized businesses are poised to grow this year according to data compiled by the National Center for the Middle Market.  The middle market M&A conditions index climbed to 57.9. Any reading over 50 indicates an expansion in M&A business. As reported in CCCA's February Middle Market M&A Report, deal makers reported a spike in early stage deal flow, which also bodes well for mid-market M&A activity. Read the entire article here.

CCCA Economic Dashboard: August 9th, 2013

August 14, 2013 15:08 by Clayton Reeves in Capital Markets, Economy  //  Tags: , , , , , ,   //   Comments (0)
Attached is the CCCA economic dashboard as of August 9th, 2013. Click here to view a larger image.

Would Anyone Buy BlackBerry?

August 12, 2013 17:50 by Clayton Reeves in Capital Markets, M&A, Telecom  //  Tags: , , , ,   //   Comments (0)
Today, BlackBerry halted trading of their shares and announced their intentions to explore strategic alternatives in an effort to ensure their BlackBerry 10 release goes well.  They have formed a Special Committee of the Board in an effort to make these strategic plans more tangible. Timothy Dattels, Chairman of the aforementioned special committee, recently said, "During the past year, management and the Board have been focused on launching the BlackBerry 10 platform and BES 10, establishing a strong financial position, and evaluating the best approach to delivering long-term value for customers and shareholders."  This effort has apparently expanded beyond the walls of BlackBerry to include a potential corporate transaction. So, given the fact that BlackBerry is now exploring their options, what will we see happen in the next weeks and months? There are basically two options: BlackBerry can go private or they can be sold to another company. Going Private: This would remove the quarterly stress of earnings, continuously swirling negative sentiment and allow the company to reinvent itself from the relative privacy a private company enjoys. Right now, they are caught in a downward spiral of tremendously reduced market share, a series of failed products and an angry investor base. Going private could help to stem this tide. However, it won't change the intrinsic nature of the company, which has been producing some lackluster offerings in the mobile sphere. Selling the Company: This is the other primary alternative this special committee is most likely considering.Who would buy a former market leader that has been destroyed in recent years by Apple, Google and Microsoft? Well, Microsoft might be a potential landing spot for BlackBerry. The Windows Phone has picked up some steam, and Microsoft could have an interest in eating up BlackBerry's market share and trying to keep it for themselves. One intriguing possibility for BlackBerry would be a Chinese acquirer.  Companies like Huawei and ZTE have the capital and ambition necessary to play in the North American arena, and it may be more cost and time effective to resurrect a struggling brand like BlackBerry than start from scratch. So, there are two main alternatives for the committee to consider, both with potential pitfalls and challenges.  However, either option could prevent the only way for BlackBerry to halt their downward slide.  It will be interesting to see who comes forward in this process, vying for a chance to buy the former market leader. Click here to read the press release from BlackBerry.

Capital Markets in 2025: What Will Change?

PricewaterhouseCoopers recently released a report on the state of capital markets in 2025.  The report expects a shift eastward, as would be expected by most market participants. This shift will increase the global horizon for many companies, and force them to look outside of their own country for growth opportunities, partners, acquisitions and even an exchange to list themselves on.  Almost three quarters of respondents said that emerging companies in particular will look to another emerging market for a listing.  Developed companies, the majority said, would prefer to list in another developed market. In terms of the might BRIC, only China has lived up to its billing so far.  80% of respondents thought that the Chinese market would be where the majority of listings occur by 2025.  For India and Brazil, 38% and 30% of respondents believe those markets will be important, respectively.  Russia is only thought to be an important market by about one in ten survey takers. This shift to emerging market exchanges will have wide implications for capital markets. Political, legal and regulatory uncertainty are all larger issues in a developing country.  Foreign investors will have to be opportunistic, but cautious when selecting investments in these new exchanges. Click here to read the report from PwC.

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