One of the best ways to learn is studying the actions and results of others, especially with complicated matters such as selling a company. The process of selling a company outright or merging it with another business involves a large number of chess pieces, with many legal and logistical hurdles to overcome. Some of these sales are facilitated in order to help businesses gain access into new markets.
There are many good examples of successful mergers and acquisition deals to choose from. In order to help illustrate this, we have compiled a list below of our top three choices for examples of great M&A deals for business owners to learn from. In any of these situations, it is vital to work with an experienced business attorney to ensure that contracts and negotiations are fair and all company interests are properly protected.
1. Verizon and Vodafone Acquisition
This well known merger shook up the wireless communication industry when it took place in 2013. Over the years, Vodafone has been involved in many mergers and acquisitions. According to Verizon.com, the company signed a deal to allow Verizon to pay for its wireless division in the United States which offered Verizon a chance for full control of Vodafone’s wireless division.
Worth $130 billion, this deal ended a bad relationship between the two companies which lasted for more than ten years. The growth of the wireless business has allowed the company to build vital networks involving sophisticated technologies, making it America’s top telecom and broadband player today.
2. Dow Chemical and DuPont Merger
The announcement of this merger in 2015 came as a surprise to many. This merger, worth $130 billion in 2018, created the largest chemical business in the globe, growing annual revenue to $86 billion. However, the company didn’t maintain the positive revenue figures and a year later in 2019 the company’s management announced spinning plans into three companies with a separate focus.
This is a good example of how not all mergers workout well for businesses. In this case, the early growth prospects didn’t workout as planned, showing that they are not always a guarantee of future success. It is also a good example of how companies can adapt to these unexpected situations and restructure after unsuccessful mergers in order to refocus their efforts.
3. Comcast and NBC Universal
Worth $30 billion when signed in 2011, this merger created a colossal content-driven and media powerhouse. With comcast handling internet and cable systems, and NBC universal handling channels, this union led to high entertainment landscapes and ensured that device users remained happy.
This merger couldn’t have come at a better time, as multi-device online viewing of videos was beginning to gain serious popularity, and television advertising was recessing. The deal’s structure initially held 49% of the NBC Universal stake to minimize the downside risk for Comcast. Then, after it was clear that the deal would sail through, Comcast bought a 51% stake.