Mergers & Acquisitions Basics

M&A— a company must have a strategic rationale for completing an M&A transaction. The goal should be to drive either an immediate or a near-term increase in shareholder value. Principle constituents of any M&A transaction – shareholders, employees, regulators, union leaders, credit rating agencies, equity research analysts, debt holders. Investment bankers have to render a fairness opinion to companies involved, … Continue reading

Basic Investment Banking/Hedge Fund Definitions

Investment banking: work with corporations that want to raise capital through public or private capital markets, risk-manage existing capital, complete M&A related transaction. Provide financing through direct investments in corporate equity and debt securities, provide loans.  A bond is debt in the form of a security, issued as a long-term obligation of a borrower with a … Continue reading

Antitrust Regulation: Acquisitions & Mergers

The Federal Trade Commision’s Bureau of Competition “is committed to preventing mergers and acquisitions that are likely to reduce competition and lead to higher prices, lower quality goods or services, or less innovation.” Bureau lawyers, along with economists from the FTC’s Bureau of Economics, investigate market dynamics to determine if the proposed merger will harm … Continue reading

ABnote Timeline

ABnote has a merger-filled history, with one specific interesting-though-confusing merger occuring in 1990. Here’s an overview.   In 1968 Edward Weitzen becomes president of the nearly bankrupt conglomerate B.T. Babbitt, Inc. He changes its name to B.T.B. Corp and focuses the company’s efforts on specialty printing. 1969, Weitzen acquires American Bank Note Company. In the … Continue reading