Patrick Lai’s Post

The sector is moving towards consolidation, with companies optimising operations and scaling up through strategic restructuring and acquisitions to boost financial outcomes, according to Lumina Intelligence https://lnkd.in/dprgGURN

BDA Partners Co-Head of Tokyo, Head of Technology and Partner Jeff Acton chats with Bloomberg about the booming Japanese market. Management buyouts are on the rise. The stock market is nearing an all-time high, giving companies more scope for acquisitions. And the government and investors are pressuring companies to bolster growth. All of this is adding up to a wave of deals in the country. “Just because the yen is weak, doesn’t mean you stop doing deals,” said Acton. “It’s driven by strategic growth priorities.” BDA has a strong track record of advising clients in Japan on cross-border transactions. https://lnkd.in/gpKpun3z #bdapartners #theinvestmentbankingadvisorforasia #japanmanda #japanesemarket

The early months of 2024 have showcased a thriving mergers and acquisitions (M&A) landscape, particularly within the food and beverage sector, shedding light on significant trends in this industry-specific segment of M&A activity. The volume of deals has markedly increased compared to the same period in 2023, reaching the highest level since the first quarter of 2016. However, the overall deal value has decreased by 31.7% in the first four months of 2024. This surge in activity is encouraging for the food and beverage industry, yet it raises questions about the sector's financial stability. Despite the positive deal volume, inflation and high interest rates have created a challenging trading and funding environment, particularly for smaller businesses. Small enterprises face pressure, evident in 14% of deals originating from acquisitions out of administration. Additionally, the dwindling private equity deals, at 9.3%, prompt a strategic reassessment for businesses seeking investment avenues. Nevertheless, this decline is anticipated to be temporary as economic conditions improve.The beverage, grocery, and confectionery sectors have continued the active trend set in 2023, representing a significant portion of M&A activity. This ongoing interest highlights the sectors' attractiveness, and it will be intriguing to observe if this trend persists throughout 2024. We invite you to share your opinion on this trend and explore how mergers and acquisitions can support your business growth in 2024. #MergersAndAcquisitions #FoodAndBeverage #BusinessGrowth #DealVolume #PrivateEquity #EconomicTrends #IndustryOutlook

📉 ITC Shares Face 7% Drop in 2 Days 📉 ITC's shares see a rapid 7% decline within two days of announcing the hotel demerger plan. 🏨 Investors express concern over the company's decision to retain 40% ownership post-demerger, limiting value unlocking potential. 💼 Despite hotels contributing <5% to total revenues, the move signifies a focused capital allocation strategy. 📈 Analysts note that the hotels segment has been cash-intensive, and demerger allows for sharper growth and optimized capital structure. 💹 However, uncertainties on swap ratio and strategic investors have contributed to cautious market sentiment. 🤔 Stay tuned for updates on ITC's strategic moves. For more 🔻 https://lnkd.in/dUwPNhkg

Having spoken to numerous investors and advisers, all agree that a common theme is the lack of a robust operational due diligence. They too are convinced every transition would have been smoother had the operational due diligence been done properly. #duediligence #mergersandacquisitions

A round up of some of the Deals in April across #RealEstate & #RealAssets Investments: Cain International on their newly announced merger with Blackbrook Capital, the newly combined business stands at $17bn AUM, focusing on supply chain infrastructure with a new HQ in London. KKR purchase of a 10,000-bed PBSA portfolio spread across 10 US states for $1.64bn from Blackstone Real Estate Income Trust. Logistics specialist Clarion Partners LLC Europe is paying Panattoni €75 million for the recently developed Panattoni Logistics Park at Voerde, in Germany. Mapletree Investments paying c£1 billion for a European PBSA portfolio from Cuscaden Peak Investments Private Limited (fka Singapore Press Holdings Private Limited) who are selling the portfolio spread across 19 cities in the UK and Germany for S$1.7 billion (£1 billion). CPP Investments | Investissements RPC has acquired student accommodation business Nido Living from Round Hill Capital More updates over the course of this month and across the variety of Real Assets sectors.

The past week alone (March 4 - 10), we tracked 549 deals totaling over USD 37.00 Billion, an increase in both transaction volume & value by 17% and 16%, respectively. This performance surpassed the number of deals recorded during the same period in both January & February 2024.   Consolidation is heating up across sectors like packaging, banking, and utilities as companies pursue scale and synergies. Let's unpack the numbers for the major deals that occurred last week:   ✅ Mondi's proposed USD 6.50 Billion acquisition of DS Smith would combine two packaging giants ✅ Cinven agreed to acquire a majority stake in fund administrator Alter Domus for USD 5.32 Billion ✅ Nationwide Building Society is in talks to acquire Virgin Money in a USD 3.70 Billion deal that would reshape UK banking ✅Iberdrola intends to acquire the remaining stake in its US subsidiary Avangrid for USD 2.50 Billion ✅ Sentinel Capital will purchase Carrier's fire protection business for USD 1.43 Billion   The M&A landscape is transforming rapidly. Let us persist in our discussion on strategies for adaptation and success.   What potential impacts do you see from the latest deals? Let's discuss and I'll share an exclusive full report for this week's top Global M&A Deals. Source: Institute for Mergers, Acquisitions and Alliances (IMAA) #valuation #transactionmonitoring #mergersandacquisitions

In a recent survey conducted by Monitor, over 1,300 CFOs were asked if they would consider an operating lease solution for future equipment and technology acquisitions. The results are in, and they are surprising! Compared to a similar survey conducted in 2018, there has been a 20% increase in the number of Food and Beverage CFOs who are open to considering an operating lease solution. This is a significant shift that could have a major impact on the industry. Check out the details of the survey here: https://lnkd.in/e338JiVs

"With the rising cost of leverage impacting private equity deal flow, bolt-on acquisitions are taking up the biggest share of buyout value and volume in Europe this year." European bolt-ons dominate in a down market #privateequity #eu #valueadd #mergersandacquisitions #strategy https://lnkd.in/g5DJ8aKb