(Charlotte, NC — June 11th, 2019)
U.S. Private Equity Exit Activity Slows in 2019
Source: Pitchbook, *As of March 31, 2019
20 Questions for More Successful M&A
(Darden School of Business) For many senior executives, acquisitions are viewed as a quick way to achieve growth. However, 65-85% of mergers and acquisitions fail to create shareholder value. As much as one quarter even destroy it. In 2011, McKinsey surveyed senior executives to to determine why so many deals turned out poorly. Here are twenty questions management can ask to assess potential deals and improve the odds of success.
Troubling Trends in Private Equity
(Financial Times) In a recent interview, Jonathan Lavine, Co-Managing Partner at Bain Capital, warned investors that private equity groups were taking on too much debt in the midst of heightened competition to win deals. He also cautioned against adjusting future revenue growth when calculating deal synergies — a practice that has become increasingly popular. Lavine likens the legitimacy of these adjustments to height, saying: “I’m 5’8, but I change the scale and make myself 6’2 on a pro forma basis. I’m not actually 6’2 on a pro forma basis, but I can make adjustments like standing on a box, maybe trying to stretch.”
What Startups Can Learn from Improvisational Comedy
(WSJ) Thinking on your feet. Keeping an audience engaged. Forging employees into a team. They’re all crucial skills for entrepreneurs, which is why many founders are turning to improvisational comedy for help running their business. They believe that the core ideas of improvisational comedy—riffing spontaneously on novel situations and interactions with other performers—can help spark creativity, collaboration and trust among startup employees.
The Terrifying Potential of the 5G Network
(New Yorker) If you believe the hype, 5G is predicted to be 100x faster than our current 4G networks and is being heralded as the fourth Industrial Revolution. However, the staggering increase in speed does not come without risks — especially when it comes to cyber security.
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