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3 Examples of Great M&A Deals

Selling a company can be overwhelming. The process involves a large number of experts and many legal hurdles to overcome. Businesses can sell stakes to venture into new markets. According to Statista, in 2020, the global value of mergers and acquisitions deals decreased to $ 2.8 trillion compared to $3.4 trillion in 2019. This article describes three examples of successful mergers and acquisitions your company can learn from.

1. Verizon and Vodafone Acquisition

Over the years, Vodafone has been involved in many mergers and acquisitions. According to Verizon.com, in 2013, the company signed a deal to allow Verizon to pay for its wireless division in the United States. The deal was worth $130 billion, 45% of the indirect interest. The acquisition offered a chance for full control of its wireless division. The 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. The company is now America’s top telecom and broadband player.

2. Dow Chemical and Dupont Merger

The announcement of the merger in 2015 was a surprise to many. The merger created the largest chemical business worldwide. The deal was worth $130 billion and was completed in 2018. The company’s revenue grew to $86 billion annually. But the company didn’t maintain the positive revenue figures. In 2019, the company’s management announced spinning plans into three companies with a separate focus. Businesses can learn through mergers that not all work well. Also, early growth prospects don’t guarantee future success. Also, companies can restructure after mergers to rebuild and refocus.

3. Comcast and NBC Universal

The deal worth $30 billion was signed in 2011. The merger created a content-driven and colossal media powerhouse. Comcast deals with the internet and cable systems, while NBC universal handles channels. The union between the two leads to high entertainment landscapes and ensures the device users are happy. The collaboration timing was perfect when multi-device online viewing of videos was gaining 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.

These are some great M&A Deals for businesses to learn from. For more information on mergers and acquisitions, contact us today at The Hoeg Law Firm.