KILLER COMPANY EXITS

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Recent years have seen significant exits from established companies,

representing learning opportunities for small businesses nationwide.

Whether through IPO or acquisition, exit planning continues to be a

significant need for all businesses large or small.

Just last year, there were 1,250 sales with a total exit volume of

$456 billion.

These exits represented a 22% increase in the number of buyout exits in North America as well as

16% in Europe.

Many of these companies required extensive planning to get to their exit, with 60% of assets held for

more than five years.

To help you see how others have succeeded in successfully exiting their companies, we have gathered some of the most successful (and

interesting) company exits including the largest merger and acquisitions deals of the past few years.

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Altera

Intel acquired Altera, the company’s largest acquisition in it’s history.

• Deal Value: $16.59 billion

• Sector: Technology

Kinder Morgan Inc.’s acquisition of El Paso Pipeline Partners represented the largest energy transaction in history, now becoming the largest midstream energy company in the U.S. because of the deal.

Deal Value: $76 billionSector: Energy

El Paso Pipeline Partners

NXP Semiconductors acquired Freescale Semiconductor, representing significant consolidation within the space and a comprised value of over $40 billion.

Deal Value: $40 billionDeal Value excluding debt: $11.78 billionSector: Technology

Freescale Semiconductor

Pfizer announced plans to acquire Hospira, resulting in an estimated cost savings of $800 million per year by 2018.

Deal Value: $17.15 billionDeal Value excluding debt: $15.93 billionSector: Healthcare

Hospira

AbbVie acquired Pharmacyclics giving it rights to 50% of Imbruvica’s revenue. Pharmacyclics is a cancer drug maker.

Deal Value: $20.99 billionSector: Healthcare

Pharmacyclics

Mylan offered an acquisition for Perrigo at bids of $205 per share.

Deal Value: $35.3 billion (pending)Deal Value excluding debt: $34.11 billionSector: Healthcare

Perrigo

Avago Technologies agreed to purchase Broadcom for $37 billion, valuing the combined company at $77 billion in enterprise value.

Deal Value: $17.15 billionDeal Value excluding debt: $15.93 billionSector: Technology

Broadcom

H.J. Heinz and Kraft Foods Group created the world’s fifth largest food company with revenues of $28 billion.

Deal Value: $45.44 billionDeal Value excluding debt: $36.7 billionSector: Food and Beverage

Kraft

Teva made a takeover offer of Mylan, even admist Mylan pending takeover of Perrigo. If Teva aquires Mylan, it would become the leading generic-drug company with more than $30 billion in annual sales.

Deal Value: $50.97 billionDeal Value excluding debt: $42.97 billionSector: Healthcare

Mylan

Charter secured both the acquisition of both Time Warner Cable as well as a subsequent acquisition of Bright House Networks for $10.4 billion. The acquisition represents 23.9 million customers in 41 states.

Deal Value: $79.59 billionDeal Value excluding debt: $56.8 billionSector: Telecom

Time Warner Cable

Reynolds American, Inc. acquisition of Lorillard Inc. represented one of the largest M&A activity within the Tobacco space.

Deal Value: $27 billionSector: Tobacco

Lorillard Inc.

Novartis AG agreed to restructure over $20 billion in assets with Glaxo Smith Kline, combining their over-thecounter and consumer drug business. Novartis bought Glaxo Smith Kline’s cancer drug business.

Deal Value: $20 billionSector: Pharmaceuticals

Glaxo Smith Kline

Facebook acquired WhatsApp, representing the largest purchase of a venture capital backed firm, effectively eliminating Twitter’s competitive advantage.

Deal Value: $22 billionSector: Tech

WhatsApp

Actavis’ purchase of Forest Laboratories, acquiring a portfolio of various medications.

Deal Value: $25 billionSector: Pharmacueticals

Forest Laboratories

Haliburton Company’s acquisition of Baker Hughes Incorporated potential acquisition represents a significant consolidation within the energy sector.

Deal Value: $35 billionSector: Energy

Baker Hughes Incorporated

Medtronic, Inc acquisition of Covidien represents an addition of a portfolio of hospital supplies allowing Medtronic to compete with Johnson & Johnson.

Deal Value: $43 billionSector: Healthcare

Covidien

Actavis and Allergen represents a deal of various practices including ophthalmology, neurosciences, dermatology, and gastroentroenterology.

Deal Value: $66 billionSector: Healthcare

Allergan

AT&T’s acquisition of DirecTV for $48.9 billion in cash representing significant consolidation within the pace.

Deal Value: $67 billionSector: Telecom

DirecTV

Comcast’s offer for TimeWarner Cable would combine the two largest cable operators within the United States. Deal Value: $70 billionSector: Telecom

Time Warner Cable

1. Restructure and change organizational growth

2. Increase market share

3. Obtaining new products

4. Gaining entrance into new markets

5. Gaining intellectual property

These were the most common elements we saw amongst these “killer” exits and reason why companies looked to merge / acquire:

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