Monday, August 6, 2012
Schulte Roth has just released the 2012 mid-year update to its PE Buyer/Public Target M&A deal study. Key observations (based on a very small sample size) include:
- Fewer deals were completed in the first half of 2012, and average deal size decreased.
- Deals took longer to get signed up.
- The use of the two-step tender offer/back-end merger structure continues to grow.
- Despite the protracted pre-signing process, fewer targets engaged in pre-signing market checks, which likely resulted in the inclusion of more "go-shop" provisions.
- The limited specific performance remedy against the buyer remains the rule.
- The average size of the target break-up fees and buyer reverse termination fees were consistent with the 2011 deals, excluding the unusually low fees in one transaction.
- CEOs of the target companies participated in more buy-out groups than in 2011.
The whole study is available here.