August 9, 2012
PE Buyer/Public Target M&A Deal Study: 2012 Mid-Year Update
Check out Schulte Roth & Zabel’s new “PE Buyer/Public Target M&A Deal Study: 2012 Mid-Year Update,” whose major findings include:
1. Fewer deals were completed in 1H 2012 and average deal size decreased
2. Deals took longer to get signed up
3. The use of the two-step tender offer/back-end merger structure continues to grow
4. 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
5. The limited specific performance remedy against the buyer remains the rule
6. The average size of the target break-up fees and buy¬er reverse termination fees were consistent with the 2011 deals, excluding the unusually low fees in one transaction
7. CEOs of the target companies participated in more buy-out groups than in 2011