<div dir="ltr">As some sort of compensation for my crypto-Trotskyite youth, I have <i>two</i> daughters who work as M&A specialists. In any case, yes, the formal variations are MANY, but the central theme predictable, as Tom correctly alludes: rewards to decision-makers.</div><br><div class="gmail_quote"><div dir="ltr" class="gmail_attr">On Wed, Oct 23, 2019 at 10:04 AM Tom Henderson via Ipg-smz <<a href="mailto:ipg-smz@netpress.org">ipg-smz@netpress.org</a>> wrote:<br></div><blockquote class="gmail_quote" style="margin:0px 0px 0px 0.8ex;border-left-width:1px;border-left-style:solid;border-left-color:rgb(204,204,204);padding-left:1ex">
<div bgcolor="#FFFFFF">
<p>No, although some reverse mergers are between public/private
organizations. <br>
</p>
<p>Differential valuations sometimes have to do with stock locks,
stupid warrant tricks, cross-covenants, all kinds of shenanigans.
<br>
</p>
<p>The very phrase "merger" is fraught with differing definitions.
On the top, two companies combine assets. Underneath, how those
assets are combined, depreciation(s), tax angles, countries/areas
of jurisdiction, legal rulings, subsidiary bulk asset transfers,
all these and more have a bearing on the perceived outcome by the
people pulling the strings. Those same people orchestrate this for
THEIR benefit, as stockholders/officers/happy-benefactors. Nothing
less, nothing more. <br>
</p>
<p>The previous citations here explain examples of it. Always look
to the principal's outcomes for the rationale as to <i>why.</i><br>
</p>
<p>Tom</p>
<p><br>
</p>
<div>On 10/22/19 5:24 PM, Perlow, Jason via
Ipg-smz wrote:<br>
</div>
<blockquote type="cite">
<div dir="ltr">Reverse mergers are between a private company and a
public company though, in which the private buys the public one.
The scenario I am thinking about is two publicly traded
companies but one has about 10X the valuation of another. But
the smaller company has a market cap of $100B. </div>
<br>
<div class="gmail_quote">
<div dir="ltr" class="gmail_attr">On Tue, Oct 22, 2019 at 5:11
PM Tom Henderson via Ipg-smz <<a href="mailto:ipg-smz@netpress.org" target="_blank">ipg-smz@netpress.org</a>>
wrote:<br>
</div>
<blockquote class="gmail_quote">
<div>
<p>Reverse mergers are pretty commonplace. Usually, it's
structure, assets, cashcow-cashflow, management,
international presence, etc that's the motivator. I've
been involved with two of them. Many work out well, but a
few of them are dodgy.</p>
<p>Tom</p>
<p><br>
</p>
<div>On 10/22/19 4:28 PM, Perlow, Jason via Ipg-smz wrote:<br>
</div>
<blockquote type="cite">
<div dir="ltr">Good example</div>
<br>
<div class="gmail_quote">
<div dir="ltr" class="gmail_attr">On Tue, Oct 22, 2019
at 4:26 PM Steve Wexler <<a href="mailto:stevewexler.wordslingers@gmail.com" target="_blank">stevewexler.wordslingers@gmail.com</a>>
wrote:<br>
</div>
<blockquote class="gmail_quote">
<div dir="ltr">It wasn't a 10x acquisition, but
Dell-EMC pushed the boundaries at least a little bit
for the IT industry.</div>
<br>
<div class="gmail_quote">
<div dir="ltr" class="gmail_attr">On Tue, 22 Oct
2019 at 16:23, Perlow, Jason via Ipg-smz <<a href="mailto:ipg-smz@netpress.org" target="_blank">ipg-smz@netpress.org</a>>
wrote:<br>
</div>
<blockquote class="gmail_quote">
<div dir="ltr">Doesn't look great for the future
of these things either
<div><br>
</div>
<div><a href="https://www.washingtonpost.com/business/the-leveraged-buyout-industry-is-starting-to-eat-itself/2019/08/06/3a01e192-b843-11e9-8e83-4e6687e99814_story.html" target="_blank">https://www.washingtonpost.com/business/the-leveraged-buyout-industry-is-starting-to-eat-itself/2019/08/06/3a01e192-b843-11e9-8e83-4e6687e99814_story.html</a><br>
</div>
</div>
<br>
<div class="gmail_quote">
<div dir="ltr" class="gmail_attr">On Tue, Oct
22, 2019 at 3:42 PM Dan Rosenbaum via Ipg-smz
<<a href="mailto:ipg-smz@netpress.org" target="_blank">ipg-smz@netpress.org</a>>
wrote:<br>
</div>
<blockquote class="gmail_quote">
<div lang="EN-US">
<div>
<p class="MsoNormal">It sounds to me like
you’re describing a classic leveraged
buyout, where a smaller company uses a
bigger company’s assets or cash to buy
it. The classic case was RJR Nabisco.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">d</p>
<p class="MsoNormal"> </p>
<div>
<p class="MsoNormal"><b><span>From: </span></b><span>Ipg-smz
<<a href="mailto:ipg-smz-bounces@netpress.org" target="_blank">ipg-smz-bounces@netpress.org</a>>
on behalf of "Perlow, Jason via
Ipg-smz" <<a href="mailto:ipg-smz@netpress.org" target="_blank">ipg-smz@netpress.org</a>><br>
<b>Reply-To: </b><<a href="mailto:ipg-smz@netpress.org" target="_blank">ipg-smz@netpress.org</a>><br>
<b>Date: </b>Tuesday, October 22,
2019 at 3:28 PM<br>
<b>To: </b>IPG List <<a href="mailto:ipg-smz@netpress.org" target="_blank">ipg-smz@netpress.org</a>><br>
<b>Cc: </b>Jason Perlow <<a href="mailto:jperlow@gmail.com" target="_blank">jperlow@gmail.com</a>><br>
<b>Subject: </b>[Ipg-smz]
Asymmetrical Mergers</span></p>
</div>
<div>
<p class="MsoNormal"> </p>
</div>
<div>
<p class="MsoNormal">Does anyone know,
historically, of a merger between two
companies where the valuation was
highly asymmetrical? Such as when you
might have a company that is worth
$1000B, but wants to merge with a
company that is worth $100B? They
don't have the assets to buy it
outright, but it would be a beneficial
marriage.</p>
<div>
<p class="MsoNormal"> </p>
</div>
<div>
<p class="MsoNormal">I am going by
this list and I cannot find any that
are comparable.</p>
</div>
<div>
<p class="MsoNormal"> </p>
</div>
<div>
<p class="MsoNormal"> </p>
<div>
<p class="MsoNormal"><a href="https://en.wikipedia.org/wiki/List_of_largest_mergers_and_acquisitions" target="_blank">https://en.wikipedia.org/wiki/List_of_largest_mergers_and_acquisitions</a></p>
</div>
<div>
<div>
<p class="MsoNormal"> </p>
</div>
<p class="MsoNormal">-- </p>
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<fieldset></fieldset>
</blockquote>
<pre cols="72">--
Tom Henderson
ExtremeLabs, Inc.
+1 317 250 4646
Twitter: @extremelabs
Skype: extremelabsinc</pre>
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<pre cols="72">--
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