Archive for Tag: IPO

Dec 1, 2015

No Need To Go Public?

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In yesterday’s Wall Street Journal Telis Demos and Corrie Driebusch presented a solid case for the downtick in IPOs – companies prefer to go the M&A route, especially in volatile financial markets. We concur but actually the M&A route is only part of the story. It’s important to think about why companies want to go public in the first place. Reasons may include liquidity for shareholders and employees, capital for growth, currency for acquisitions and probably ego, all are part of the IPO equation. As M&A bankers we discuss the viability of an IPO with a lot of businesses and…

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Dec 1, 2015

FinTech Disruptors Drive Visa and Visa Europe Combination

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Earlier this month, Visa Inc. announced that it had entered into an agreement to acquire Visa Europe for €21.2 billion (upfront consideration: €11.5 billion in cash and €5.0 billion in convertible preferred stock; contingent consideration: €4.7 billion). We believe this transaction makes strategic sense for Visa, and the valuation multiples were not as high as some have reported. Nevertheless, the integration, particularly related to technology, will be challenging as reflected by the $450 to $500 million in integration costs expected over the next 5 years. In addition, the ability for Visa Europe to move from a bank-owned, cooperative pricing model…

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