June 2008 Blog Posts (5)

Roger's Corner: Is It Time to Sell?

With banks strapped for cash the Fed is moving to make it possible for PE firms and other private investors to invest in big banks. It is a turn of events that is unprecedented in modern finance, as strict federal rules thus far have prohibited such activity. The long time fear has been that PE firms are unregulated entities; and therefore would oversee the function of banks without federal review and oversight. Buyout firms are now getting… Continue

Added by The M&A Advisor on June 27, 2008 at 8:00am — 1 Comment

KeyBanc's Inadequate Fairness Opinion In Max & Ermas Restaurants' Buyout

Last week's announcement that Max & Ermas Restaurants (MAXE) had a rough second quarter, with the weak economy and the March blizzard hurting top and bottom lines, made us wonder whether we should expect yet another busted buyout. After all, bad quarterly results have triggered quite a few merger cancellations, for the most part unjustifiedly. However, when we saw KeyBanc's (… Continue

Added by Thomas Kirchner on June 25, 2008 at 5:30am — No Comments

Roger's Corner - June 20, 2008: Beyond YouTube

With inflation on the move, the immediate future of futures uncertain, and inconsistency in oil prices the markets opened lower today. In large M&A news, Bank of America is poised to complete its purchase of Countrywide for approximately $3 billion. Yet middle-market M&A deals here in the US still remain off from the 2007 high.

Though M&A Activity has definitely taken a hit here in the US, global deals continue to be robust, especially as… Continue

Added by The M&A Advisor on June 20, 2008 at 4:46pm — No Comments

American Capital Strategies Pullout Of Merisel Buyout Highlights Risk Of Having Private Equity Investors

Another addition to the graveyard of busted mergers: business development company American Capital Strategies (ACAS) has terminated its agreement to buy Merisel (MSEL) under the “material adverse change” clause that has become a standard excuse for buyer’s remorse. After the exchange of multiple letters between the two firms, Merisel stock reacted predictably with a steep drop and now has a market capitalization below its net cash, despite generating positive earnings and cash flow in… Continue

Added by Thomas Kirchner on June 16, 2008 at 2:00pm — No Comments

Roger's Corner - June 13, 2008: Where's the Leak?

Domestic US stocks closed up a bit yesterday, as retail sales benefited from the economic stimulus checks, although leading indexes finished well off the day's highs, as oil prices continued to pound stocks. On big deals, Microsoft’s bid for Yahoo collapsed, as Yahoo moved in unison with Google on synergizing some search performances, possibly valued at $800 million in revenue.

Meanwhile, most on Wall Street agree that the Fed is poised to battle inflation, with… Continue

Added by The M&A Advisor on June 13, 2008 at 12:44pm — No Comments

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