Business as usual
Cum să ajungi la vânzări de batoane proteice de 7 milioane de lei pe an în doi ani de lansarea business-ului? Urmăriţi ZF Live miercuri, 3 aprilie 2019, ora 12.00 cu Sabin Piso , fost bancher de investiţii , care a fondat compania 7Distribution ( Nutramino , Powerbar )
www.7Distribution.ro
Interviu cu Sorin Pislaru , Ziarul Financiar
Banca Transilvania a anunţat astăzi achiziţia Casei de Investiţii Capital Parteners, cea mai mare firmă independentă de fuziuni şi achiziţii şi de finanţări corporative din România, prin compania sa de brokeraj pe bursă BT Securities. Tranzacţia constă în preluarea echipei şi brandului Capital Partners, astfel încât BT Securities va deveni BT Capital Parteners. Tranzacţia urmează să fie finalizată până la sfârşitul lunii martie în acest an.
BT Capital Partners va asista şi va consilia companiile pentru listarea la bursă şi pentru atragerea de noi investitori, va oferi servicii de brokeraj, consultanţă pentru fuziuni şi achiziţii, finanţare şi structurare de operaţiuni financiare complexe, cercetare de piaţă şi consultanţă pentru management strategic.
Sabin Piso | Managing Director @ Capital Partners
Toate companiile pornesc de la o idee … insa ca sa transformi aceasta idee intr-o afacere profitabila ai nevoie de finantare. Avand fondurile necesare, vei putea lansa ideea pe piata si ulterior vei putea transforma ideea intr-o companie de succes.
Cu toate ca unele firme de tip startup sunt finantat cu fonduri personale sau cu imprumuturi personale la banca, majoritatea lucreaza cu “venture capitalists”, care ramane totusi cea mai utilizata varianta. Finantarea obtinuta astfel, se obtine in schimbul cedarii de actiuni din firma.
Acest tip de finantare este de obicei facut in etapele care vor sunt descrise aici pe scurt :
PRE-SEED (stadiu de idee)
Finantarea de tip pre-seed este primul pas in ridicarea de fonduri necesare pe baza de vanzare de actiuni. In aceasta etapa, firma ta dezvolta conceptul sau prototipul cu doar cativa angajati sau parteneri (de obicei esti sunt doar cei care au avut ideea). Acest stadiu de dezvoltare nu permite acordarea unui imprumut de catre banca, inca firma nu genereaza venituri si nu are garantii. De asemenea, fondurile de tip venture capital, nu vor intra in societatea ta incat nu ai aratat ca produsul tau e vandabil si nu ai generat inca venituri pe baza carora acestia sa evalueze si sa investeasca. Pe scurt, in aceasta etapa, riscul este foarte mare pentru orice investitor, incat foarte putine companii reusesc sa aiba un produs bun si vandabil.
In acest stadiu, ai nevoie de fonduri de tip pre-seed, care vin in general din economiile tale, de la parinti, rude, prieteni, sisteme crowdfunding (cum ar fi kickstarter), granturi in functie de domeniul de activitate, incubatoare sau anumiti investitori privati .
O runda de finantare normala in aceasta etapa, este de sub 10 000 euro dar acest capital este critic pentru dezvoltarea ideii in prototip / concept. Aceste fonduri sunt de obicei folosite pentru ca ai nevoie sa iti faci un website, sa cumperi diverse materiale de care ai nevoie pentru produsul pe care vrei sa il vinzi, ca sa poti sa dovedesti ca exista cerere pe piata si sa poti sa testezi produsul.
Ca sa poti obtine aceasta finantare critica, este bine ca inainte sa discuti cu orice posibil investitor, sa ai un plan de afaceri viabil si o firma in care acesta sa poata investi.
SEED (stadiu incipient / ideea se transforma in prototip)
In aceasta runda, de obicei firma (startup-ul) trece la etapa de finalizare a produsului si pozitionarea acestuia in piata. Cand ajungi la aceasta etapa, te focusezi la calitatea si caracteristicile produsului tau finit si a pietei careia te adresezi.
Cu alte cuvinte, partea de seed aduce un suport sustinut afacerii tale prin pregatirea produsului final pentru intrarea pe piata. (marketing, product engineering, design, packaging, etc)
Investitiile in aceasta etapa pot ajunge chiar si la 1 mil $. In aceasta etapa te adresezi incubatoarelor, acceleratoarelor (care au intrat langa tine chiar de la stadiul pre-seed), investitorilor de tip “angel investor”, unui numar limitat de fonduri de VC (early stage) care intra chiar din stadiul de SEED.
EARLY-STAGE (stadiu incipient de introducere pe piata a produsului)
Investitorii se asteapta sa gaseasca in aceasta etapa o companie care a vandut deja cateva produse, a dovedit ca ideea initiala poate produce venituri si exista o baza de clienti. Aici puteti primi sume mari (de la cateva milioane pana la sute de milioane) pentru investitie de la mai multe variante de investitori, bani care se vor duce pe cresterea bazei de clienti, cresterea fortei de vanzari, identificarea zonelor de crestere si pe finantarea stocurilor sau resurselor pentru crestere accelerata.
A, B, C rounds (stadiu de dezvoltare afacere, accelerand pentru a ajunge la breakeven sau chiar profitabilitate)
Daca afacerea are nevoie de alte fonduri suplimentare pentru cresterea veniturilor si a cotei de piata, impreuna cu dezvoltarea resurselor umane ale companiei, se trece la aceste runde de finantare. Cu cat compania e mai aproape de generare de profit sau macar de punctul de breakeven, cu atat runda ta de finantare va avea mai mult succes, afacerea este deja mult mai sigura cu sanse mari de reusita.
Final Stage
Acest stadiu de finantare va fi necesar doar pentru expansiunea masiva. Astfel, vei avea nevoie de capital masiv de lucru pentru stoc, resurse umane pentru expansiune, cercetare si dezvoltare pentru produsele actuale si produse noi care sunt necesare pentru acapararea cotei de piata, etc.
In acest moment firma ta a dovedit tot ce trebuia dovedit si toata echipa se va concentra doar la expansiune si marirea profitului generat.
AirBNB a ajuns sa genereze mai mult venit anual pentru proprietari decat inchirierea clasica pe termen lung. Trebuie doar sa urmaresti cateva conditii pentru a avea o locatie buna.
Despre AirBNB (www.airbnb.com)
AIRBNB a pornit la drum in 2007 in San Francisco, cand Joe Gebbia si Brian Chesky se gandea cum sa faca sa isi plateasca chiria, incat nu isi permiteau. Acestia au inceput sa dea in chirie 3 paturi in apartamentul lor, oferind si micul dejun. Au construit un website simplu si au inceput sa inchirieze aceste paturi, reusind sa aiba 3 clienti.
In 2008, l-au adus in echipa si pe Nathan Blecharczyk, care era un tehnician destul de bun si care putea sa ii ajute cu partea tehnica pentru dezvoltarea ideii lor. In acelasi an, au lansat o firma prin care vroiau sa beneficieze de avantajul generat de lipsa camerelor de hotel in zona. In 2009 s-au imprietenit cu Paul Graham si au intrat impreuna in programul Y Combinator care i-a ajutat sa obtina 20 000 $ in fonduri. In 2009 numele fostei firme (Airbed&Breakfast) este schimbat in AirBNB. Din 2009 acestia primesc 600 000 $ de la Sequoia Capital si Y Ventures. In 2010 primesc fonduri de 7.2 milioane $ pentru dezvoltarea companiei de la mai multi investitori. In 2011, AirBNB mai primeste 112 milioane $ de la alti investitori, printre care si Ashton Kutcher, care intra si in advisory board. In 2012, compania mai atrage 200 milioane $. Dupa ce in primavara din 2014 AirBNB ajunge la 10 milioane de oaspeti si 550 000 proprietati listate pe glob, AirBNB mai atrage 500 milioane %, evaluand compania astfel la 10 miliarde $.
Despre viitorul agentiilor imobiliare si cum sa faci mai multi bani FARA acestea.
Daca ai un apartament ok, intr-o zona centrala, atunci AirBNB face mult mai mult sens pentru tine decat un inchiriat pe termen lung printr-o agentie imobiliara.
Astfel, in Bucuresti exista deja o scadere destul de masiva de apartamente pentru inchiriere, incat proprietarii prefera sa le pastreze pentru AirBnb si sa faca mai multi bani. Acestia, listeaza apartamentele pe www.airbnb.com si intra in competitie directa cu hotelurile pentru piata de cazari.
De exemplu, in Bucuresti in luna Octombrie 2015 erau listate un nr de aprox 500 de unitati active din 900 total listate, care includ : camere private in apartamente in care dvs locuiti, studiouri, garsoniere, apartamente de 2 camere, 3 camere si 4+ camere. Din acest total, majoritatea sunt garsoniere si studiouri (60%) si 14% apartamente de 2 camere.
Asta arata clar ca cererea din Bucuresti este clar directionata catre costuri mici pe noapte, insemnand undeva intre 30 si 80 euro / noapte.
Statistica pe nr de camere :
Statistica pe nr de oaspeti / inchiriere
Ca sa tragem si o concluzie, la nivel de studio de exemplu, cu un nivel de inchiriere de 20 de nopti din 30 intr-o luna, ca sa nu exgeram, dvs puteti genera un venit de 35$ * 20 nopti = 750$ / luna ceea ce inseamna putin mai mult decat dublu unei chirii normale pe termen lung!
Asta inseamna ca daca va concentrati putin la acest business si va documentati cat sa alegeti bine apartamentele pe care le dati in productie, puteti face de 2 ori mai multi bani decat prin inchirierea normala pe termen lung si fara sa folositi nicio agentie imobiliara!!!
Daca in mod normal, puteti face un venit anual din chirii pe termen lung de 6-8% din pretul apartamentului, prin AirBNB, puteti ajunge la 15-18% in acelasi an!
Aveti grija totusi, cum alegeti apartamentele pe care le puneti pe AirBNB. Acestea trebuie sa arate foarte bine, sa fie foarte curate, zona sa fie buna, centrala, intotdeauna aproape de guri de metrou, restaurante, suepermarketuri, etc.
AirBNB ajuta astfel proprietarii sa aiba un venit mai mare generat de aceeasi unitatate, in cazul in care aveti apartamentul potrivit, in locul potrivit si amenajat intr-un mod potrivit.
Dezvoltatorul Maurer Imobiliare, fondat de omul de afaceri Simon Maurer, a mandatat casa de investiţii Capital Partners pentru identificarea unui partener strategic care să sprijine compania în intenţia de a se extinde la nivel naţional după ce a construit mai multe ansambluri rezidenţiale în oraşe din centrul ţării precum Braşov, Sibiu sau Cluj-Napoca. „În momentul de faţă, piaţa ne cere să facem acest pas. Este o decizie pe care am analizat-o îndelung şi care, cu siguranţă, va duce compania la următorul nivel“, spune Maurer.
„Luând în calcul toate semnele din piaţă, sunt ferm convins că acest segment (rezidenţial – n. red.) va creşte într-un ritm accelerat în următorii ani şi cred că este momentul optim pentru o astfel de acţiune (extindere la nivel naţional şi căutarea unui partener strategic – n. red.)“, afirmă Sabin Piso , managing partner al Capital Partners. El nu a precizat însă care sunt oraşele vizate de Maurer Imobiliare pentru extindere.
Tuesday Morning, private, San Francisco-based Thoma Bravo, LLC bought Compuware Corp. for $2.5 billion. The deal, after approval by federal regulators and Compuware shareholders, will leave stockholders with $10.92 per share, a 17% bump up from the closing price of $9.35, Friday.
Thoma Bravo, LLC has been around for over 30 years and has built itself a reputation for being one of the most successful and experienced private equity firms in the United States. The company specializes in consolidating the application software, infrastructure software and technology enabled services sectors.
Thoma Bravo owns a variety of software companies including Attachmate, Deltek and Empirix.
Compuware Corp. is a technology performance company. They have occupied the application management arena for over 10 years. They are best known for their APM (Application Performance Management) software and services that make critical applications work better and faster for businesses.
According to sources, the deal is a longtime coming. The process began back in 2012 when activist hedge fund Elliot Management took stake in the company and offered $11 a share to acquire it. Elliot still owns 9.5% of Compuware and has agreed to vote in favor of the deal.
After Elliot took stake in Compuware, they underwent a series of cost-cutting measures, began paying a dividend and divested under-performing, noncore operations—like Covisint.
“We began with the I.P.O. of Covisint, initiated a robust dividend, divested noncore operations, and aggressively reduced corporate expenses,” Compuware’s chief executive, Bob Paul, said in a statement. “Compuware is now best suited to focus on its core mainframe and APM businesses as a private-equity backed company, where we can continue to serve our customers in a competitive environment with greater flexibility to take a long-term approach.”
Bob Paul says no layoffs planned in the sale of the company.
Leading global cruise line, Norwegian Cruise Line Holdings, bought privately held Prestige Cruises International for a little over $3 billion in cash and stock. The deal included the assumption of debt, to add higher-end trips to its fleet and offerings.
In addition, under the terms of the deal, Norwegian Cruise Line could pay up to $50 million to Prestige’s shareholders if the target company meets certain financial performance targets next year.
Kevin Sheehan, Norwegian Cruise Line’s Chief Executive Officer said, “Our complementary strengths and skillsets will pave the way for new cross-selling opportunities, cross-brand collaboration, cross-business support, as well as joint partnerships which, coupled with meaningful synergies that can be quickly implemented, will provide solid accretion to earnings per share and drive long-term shareholder value.”
Norwegian Cruise Line has been around for over 47 years. Breaking away from traditional cruising, the cruise line revolutionized the industry with Freestyle Cruising, giving guests more freedom and flexibility. With 13 Freestyle Cruising ships, guests enjoy resort-style cruises with the most contemporary and modern fleets to date.
The acquisition of Prestige Cruises International is a welcomed undertaking for Norwegian Cruise Line Holdings, as Prestige Cruises are known for offering a more high-end cruising experience with Upper Premium and Luxury segments. Prestige Cruise International is the parent company of Oceania and Regent Seven Seas Cruises, which have both built themselves a reputation for offering exemplary quality cruising. The cruise lines have a limited capacity per ship, ranging from 490 to 1,250 guests. This beats the standard 3,000 plus passengers per ship. The focus on luxury—with superior accommodations, high quality service and gourmet cuisine—has driven the company to lead the industry in Net Yields. This will bolster Norwegian Cruise Line Holding’s ability to compete and capitalize on the high-end cruise line market.
The deal is expected to close by the end of the year.
Likely to cost the government close to $20 billion over the next 10 years, the increasingly popular corporate inversion continues to serve as an easy out for businesses trying to escape the U.S.’s enormous 35% corporate tax.
One of the 50 largest companies in the world, pharmaceutical company AbbVie, joined the growing list of corporate escapees when they completed a $54 billion takeover of the Irish biopharmaceutical innovator, Shire, last month.
But, efforts to pull-the-plug on this major loophole have been slow, if not stagnant, amongst law-makers.
Both Republicans and Democrats have called for legislation to end inversions, but in the absence of a, much needed, corporate tax overhaul and reform. While congress chooses to ignore the more important issue of reforming the U.S.’s corporate tax, businesses have created other avenues to circumvent taxes irrespective of whether or not legislation pulls-the-plug on inversions, solely.
Not to mention, the mere threat of new legislation to cut off the inversion outlet seems to be quickening the pace of offshore inversions. “Wall Street is whispering in the ears of all these corporate executives saying, ‘Congress might shut this down, you’ve got to do it now,’ ” said Rebecca J. Wilkins, senior counsel at the Institute on Taxation and Economic Policy.
Aside from corporate inversions, U.S corporate tax revenues continue to erode as the result of two additional loopholes being exploited. One of the loopholes is the master limited partnership, where companies pass all profits along to shareholders and are therefore exempt from paying corporate taxes.
The other loophole being exploited is, yet, another pass-through entity much like the aforementioned master limited partnership. The real estate investment trust has also been experiencing record popularity amongst corporate businesses. In the case of the real estate investment trusts, the trusts pass profits along to investors, exempting them from corporate taxes.
These flaws in the corporate tax system and the legislation (or lack thereof) attached to acquiring corporate taxes has created a tremendous stir over social media. The public opinion of Congress and their decision-making process and progress has been unfavorable at best. Many people making some very valid points in their social media posts, such as these:
PogoWasRight had this to say, “It seems to me that our culture has always believed that “fair is fair”. If that is the case, and the SCOTUS has declared that Corporations are people, why then cannot people be considered Corporations and move their assets and income offshore to avoid paying taxes?”
Mike from NYC said, “This is what we need to do to counter these tax inversions. Wake up Congress and tell them that what we need in our country are tax laws which DEEM all money earned by US corporations and their phony-baloney subsidiaries to be US Taxable Income regardless of where it’s earned and regardless of whether the US corporation ever brings that money home.
This is exactly how individual US citizens are treated under the same circumstances. As with individuals, the corporations would, of course, get dollar-for-dollar tax credits for foreign taxes paid on those same earnings.”
It looks like Congress better wakeup before tax revenues dwindle down to next-to-nothing, while businesses continue to search for more loopholes to avoid the corporate tax.
For an enterprise value of $1.23 billion, the Dutch brewer, Heineken NV, agreed to divest its Mexican packaging operations, Empaque, to Crown Holdings Inc. As the world’s third-largest brewer, the divestment follows Heineken’s affirmation to focus and commit itself to being a chief beer producer in the country. The deal will provide the company with more financial flexibility for their Heineken, Amstel, Dos Equis and Sol beer brands. With headquarters in Philadelphia, PA, and global locations, Crown Holdings is the leader in metal packaging technology.
They employ over 21,000 people in over 40 countries and had total revenues of $8.7 billion in 2013. With the Empaque acquisition, Crown Holdings looks to expand its billion dollar empire and position itself as a strong competitor to Rexam, the world’s largest beverage can producer. Heineken’s history with Empaque began in 2010 when Heineken acquired the packaging company as part of its acquisition deal with Fomento Económico Mexicano, S.A.B. de C.V., better known as Femsa.
The all share-transaction valued the company at about $7.6 billion. Amsterdam-based Heineken is expected to post a gain of million euros ($394 million) with the finalization of the deal. The chairman and Chief Executive Officer of Heineken, Jean-François van Boxmeer, had this to say in a statement: “We are confident that Empaque will flourish under its new ownership, and we look forward to our ongoing partnership.” Emaque is expected to post revenues of approximately $700 million and earnings before income tax, depreciation and amortization of about $150 million, according to Crown Holdings. The deal is subject to regulatory approval.
Markets in the United States are closed on Monday for the Labor Day holiday, but shares of Heineken rose slightly to €58.12, in Amsterdam’s morning trading. Crown Holdings closed up less than 1 percent, at $48.27, in trading in New York, the previous Friday.
Tyson Foods Incorporated got the green light from the United States Antitrust when they approved the $8.5 billion sale of Hillshire Brands Company.
The Justice Department is requiring Tyson to sell its Heinold Hog Markets unit to earn the antitrust approval.
“Today’s proposed settlement will help ensure that hog breeders in the United States will continue to receive the benefits of vigorous competition when selling sows,” said Bill Baer, assistant attorney general for the Department of Justice’s antitrust division.
After share prices of both companies dropped sharply 10 minutes before the Justice Department announced the deal and there was a dramatic increase in stock and options volume, it appeared traders were bracing for bad news.
The Hillshire share trading volume hit 8.07 million shares. Of the total trading volume, 5.5 million shares came several minutes before and after the DOJ’s announcement.
With operations in Illinois, Iowa, Indiana, Michigan, Minnesota and Nebraska, and $270 million in revenue, Heinold Hog Markets buys sows from farmers and resells them to manufacturers. Hillshire buys them to make sausages for its Jimmy Dean and Hillshire Farm brands.
Arkansas-based Tyson, a massive seller of chicken, beef and pork competes with Hillshire in the business of buying sows when they are too old to breed, according to the Justice Department.
“Although the sale of sows constitutes a small percentage of overall revenues, farmers rely on this source of income as an important contribution to their earnings,” the Justice Department said in a competitive impact statement filed with the U.S. District Court for the District of Columbia.
Creating a lot of unrest amongst farmer, consumer and rural organizations, as well as lawmakers, they worried the deal would allow the larger Tyson to have enough power to push down the prices paid to hog farmers, thus driving up prices at the grocery store level.
According to Wenonah Hunter, executive director of Food and Water Watch, “Because Tyson can align its pork slaughter business with Hillshire’s branded processing business, Hillshire products will have a leg up on competitors, who will likely have to raise prices.”
The court must approve the proposed settlement filed by the Justice Department to help prevent future price inflation.
published by www.finantesiafaceri.eu
Sabin Piso (www.sabinpiso.com) Director Mergers and Acquisitions la Capital Partners si fost CEO la iLink Telecom (Cobalt IT), ne prezinta cateva trenduri cheie in piata de telecom din Romania si directia operatorilor in anii urmatori.
Sabin Piso este primul om de telecom din Romania care inca din anul 2011 a realizat importanta vitezei din punct de vedere al consumatorului si a fost prima firma de profil din Romania care a oferit servicii de Internet de 100 Mbps pentru abonatii rezidentiali, servicii care nu aveau limita de trafic nici la banda externa Internet si nici la banda metropolitana, venind in intampinarea cererii de viteza a pietei. Pe scurt pentru 100 de ron pe luna, abonatii iLink puteau descarca cu o viteza de 100 Mbps orice fisier din afara sau din interiorul Romaniei.
Sabin Piso vede cateva directii ca trenduri si strategie de dezvoltare pe piata romaneasca de telco din urmatorii ani:
Luand in calcul trendurile explicate mai sus, observam tendinta de convergenta mobil – fix care este deja bine stabilita pe multe piete pentru ca toate aceste sisteme converg asupra unui singur element foarte important: VITEZA de transfer.
In acest mediu concurential viitor, operatorii telecom care ofera atat servicii telecom fixe cat si mobile au un avantaj evident asupra rivalilor lor exclusiv de telefonie mobila.
Operatorii telecom pot creste veniturile prin stimularea de achizitie a clientilor si venitul mediu per utilizator. In plus pot realiza simultan economii substantiale prin reducerea costurilor in domenii cum ar fi costul de vanzare, achizitie client si a operatiunilor.
Intre timp, operatorii de telefonie mobila se confrunta cu propriile probleme de retea. Pana in prezent, operatorii de telefonie mobila s-au bazat pe operatorii de retea fixa pentru a asigura capacitatea de backhaul inchiriate, crescut in mediul rural, cu retele de microunde. Dar cresterea remarcabila in banda larga mobila in ultimii doi ani a fortat operatorii de telefonie mobila sa se confrunte cu o amenintare dubla, atat pe partea de retea cat si pe partea financiara.
Ca pura consecinta a celor explicate mai sus, operatorii de telefonie mobila se vor confrunta cu o provocare tot mai mare pentru a mentine nivelul de venituri si profitabilitate. Pierderea cotei de piata de telefonie mobila in avantajul pachetelor mai bogate de servicii vor eroda probabil veniturile lor curente si viitoarele oportunitati de venituri vor fi pierdute de asemenea pentru ca operatorii traditionali pe infrastructura fixa captureaza cea mai mare pondere de agregare a abonatilor.
Concluzia este ca in momentul de fata operatorii de servicii mobile se uita la achizitii de operatori pe infrastructura fixa, cu scopul de a-si proteja afacerea existenta si cota de piata si de a obtine o pondere viitoare cat mai mare, aceasta strategie fiind deja o obligativitate pentru a proteja compania impotriva distrugerii de valoare.
Sabin Piso vede in Romania un val de achizitii in felul urmator:
– Akta (DCS) va fi preluata probabil de UPC Romania pentru ca UPC in momentul de fata este cu mult in urma concurentei, respectiv a RomTelecom si a RCS-RDS, ca numar de abonati si servicii dar de asemenea estimeaza ca in urma integrarii, acestia vor pierde undeva la 25-30% din abonatii preluati incat infrastructurile celor doua companii sunt diferite iar Akta a cumparat abonati de la retele de cartier doar pentru a-i revinde fara a oferi o valoare adaugata printr-o integrare intr-o infrastructura noua cu acelasi nivel de servicii in toate judetele in care au acoperire. Pe scurt Akta cumpara un abonat de la o retea de cartier cu X euro si il vinde 4 luni mai tarziu cu X * 2,5 fara a investi in acestia. Ramane de vazut daca cineva va accepta si va plati aceasta diferenta de bani fara sa primeasca o valoare adaugata prin integrare si upgrade.
– UPC Romania va fi parte probabil in circa 8-12 luni dintr-un deal zonal pe Europa care va fi facut cu Vodafone, care la randul lor au fost destul de clari ca sunt interesati de infrastructura fixa in ultimul an, fapt vizibil de asemenea prin urmarirea achizitiilor si interesului acestora mentionat de presa in diverse randuri.
Pe piata locala doar RCS-RDS a aratat cu adevarat putere de inovatie prin content, implementand un sistem de canale video proprii, prin sistemul FTTH G-Pon, prin infrastructura de telefonie mobila si ofertele net superioare competitorilor si prin faptul ca RomTelecom (Deutsche Telekom) a decis introducerea brandului T-Mobile si integrarea Cosmote pentru a le face fata acestora.
Concluzionand, piata este foarte agitata in acest moment si numai jucatorii care au curaj si care investesc masiv luand in considerare aceste trenduri noi vor castiga aceasta competitie.
Piata de retail FMCG (fast moving consumer goods) din Romania a inceput deja sa se schimbe destul de rapid in ultimii ani, insa schimbarile majore in strategie vor aparea in 2014.
Am discutat in acest sens cu Sabin Piso – (www.sabinpiso.com) – Director Mergers and Acquisitions la Capital Partners, care a identificat ce se va intampla in acest sector in urmatoarele 12 luni in Romania, stabilind trenduri ce vor impacta producatorii si retailerii:
• Crestere in Multi-Format Cumparatorul are nevoie sa evolueze, astfel si oferta de pe piata trebuie sa tina pasul cu aceasta evolutie. Retailerii care o sa aiba un mai mare succes in viitor sunt clar cei care vor dezvolta o retea mult mai complexa de vanzare care sa satisfaca orice nevoie. Astfel, retelele puternice se vor dezvolta pe toate nivelurile, respectiv vor deschide si „magazine de proximitate”, supermarketuri orientate numai pe zona de premium si vor merge si pe directia e-commerce (magazine online cu livrare la domiciliu.
• De la acoperire regionala la nationala Producatorii importanti sunt recunoscuti ca aleg ca parteneri lanturile de retail care au o rata de dezvoltare agresiva, o strategie pe termen lung de acoperire a intregii zone geografice a tarii si care sa fie si un jucator international. Acest trend impus de producatori isi spune cuvantul in strategia lanturilor de retail care au inceput sa se adapteze cererii. Producatorii prefera sistemul de retail modern (organized trade sau IKA, international key accounts), decat cel de retail traditional (magazine sau boutique-uri mici in diverse locatii, denumit traditional trade) datorita unor elemente cheie: management avansat al stocurilor, platile se fac in termeni clar stabiliti, siguranta ca firma respectiva isi pastreaza angajamentele, logistica optimizata deoarece retele de tipul organized trade cum ar fi Kaufland, Selgros, etc. au depozite centrale proprii si astfel distributia catre magazinele acestora din diverse localitati se va face intern, reducand costurile de transport ale producatorului fata de traditional trade unde logistica trebuie sa alimenteze fiecare magazin distinct cu produse in mod repetat.
• Vanzarile on-line (e-commerce) Acest canal este inca experimental pentru retaileri si nu reprezinta un procent mare din vanzarile acestora dar totusi trendul este pozitiv iar estimarile spun ca acest canal va avea o crestere enorma in anii urmatori. Retailerii se concentreaza inca la incurajarea clientilor pentru a face cumparaturi mai mari online fata de alegerea stricta bazata pe preturi mici si produse putine in functie de promotiile oferite de website.
• Cumparatorul roman va fi din ce in ce mai complex Cumparatorul roman incepe sa isi schimbe comportamentul. Acesta cumpara utilizand mai multe canale de achizitie, urmarind mai mult promotiile. Cum accesul online la informatie e din ce in ce mai facil, aplicatiile pentru smartphone din ce in ce mai bune si mai multe, cumparatorul comunica cu foarte mare usurinta acum si transmite foarte usor si prietenilor sai aceste obiceiuri.
Cumparatorii pot sa compare mult mai usor preturile produselor si chiar sa plateasca folosind telefonul mobil. Acest acces la mediul online ii ofera cumparatorului libertatea de a fi mult mai critic si mai atent. Astfel toate lanturile de retail vor lucra in urmatorii ani impreuna cu producatorii pentru a structura o strategie de crestere comuna pentru a intelege comportamentul acestor cumparatori.
Aceste posibilitati de crestere vor genera consolidari de piata in randul producatorilor prin fuziuni sau achizitii, consolidari ce vor permite producatorilor sa aiba un cuvant mai greu de spus in fata lanturilor de organized trade (IKA), sa aiba margini de profit mai mari prin sinergiile obtinute din integrare si sa be-neficieze total de cresterea viitoare a pietei prin aceste canale noi.
Astfel, ne asteptam ca in 2014 sa existe minimum 2 tranzactii in domeniul snack-uri unde piata este foarte fragmentata si unde o astfel de consolidare ar fi foarte benefica.
published by www.finantesiafaceri.eu
Private equity company, Nordic Capital, bought Swiss engineering company ABB’s Full Service business unit on Wednesday, August 20, 2014 for an undisclosed amount. This is the latest in a string of divestments of its non-core operations.
This is what Spiesshofer had to say about the divestments, “With the agreed sale of our Full Service activities we now have found a new home for five businesses in eleven months that have no substantial synergies with the rest of our portfolio, raising about $1 billion.”
Subjected to regulatory approval, ABB’s new Chief Executive Officer, Ulrich Spiesshofer said he expects the sale to close in the fourth quarter.
ABB is a multinational corporation that operates mainly in robotics and the power and automation technology business. It is one of the largest engineering companies in the world. It has operations in approximately 100 countries.
ABB’s “power and productivity for a better world” slogan is so aptly reflective in their methodical divestment ventures. In August, 2007, ABB sold ABB Lummus Global business to Chicago Bridge & Iron Company for $950 million. In 2008 the company sold its 50% stake in the shares of ABB Powertech Transformers to Powertech at a gain of $11 million. In 2013, they sold all assets of Baldor’s generator-set business to Generic Holdings, Inc.
Then in February of this year, ABB sought out to divest several more units to raise more than $1 billion in total proceeds. In May, the company completed the sale of Thomas & Betts’ heating, ventilation and air conditioning business (under the Reznor brand) to Nortek, Inc. The deal closed for $260 million in an all-cash transaction. In June they completed the sale of Power-One’s Power Solutions business to Bel Fuse Inc. for approximately $117 million. Then, just a couple days ago, ABB completed the sale of Thomas Betts’ Meyer Steel Structures business to Trinity Industries. The deal closed for $600 million in an all-cash transaction.
Founded in 1986, PetSmart, Inc. is the largest retail chain operating in the U.S., Canada, and Puerto Rico. The company not only offers a broad range of pet products, it also offers in-store services including boarding, pet adoption, grooming and training.
While PetSmart is one of the leading online providers of pet supplies and pet care information, same-store sales for the $6.8 billion pet-care company fell last quarter for the first time in about a decade as competition with Amazon.com Inc. and other retailers increase.
A declining share price and the same-store sales fall can appear as early warning signs to activist investors who target undervalued companies to shake them up. Jana Partners LLC and Longview Asset Management LLC own almost 20% of PetSmart and are calling for a sale.
According to John Tomlinson, a New York-based analyst at ITG Investment Research, “PetSmart has gone from a retail darling to where it is now. This company is far from being in any sort of dire straits, but it’s just that the change happened relatively quickly and people are worried that if they don’t get more aggressive, the business could deteriorate further. There’s probably a lot of discussion going on about what the best alternatives for the company would be.”
Still, PetSmart has a lot going for them as they consider possibilities as a result of the company’s recent decline in sales. Their high free-cash flow yield and low debt relative to earnings open up several ways to boost returns, according to shareholder Olstein Funds.
Aside from the leverage buyout (LBO) option, PetSmart may also consider a merger with Petco. A merger with Petco, as either the buyer or seller, can boost the stock into the $80 range, while an LBO could take place in the mid to high $70s, said Daniel Johnson, of River Road Asset Management LLC. (River Road Asset Managment oversees about $10 billion and owns PetSmart shares.)
As of Tuesday, PetSmart has stated it would explore a potential sale of the company, caving to pressure from several shareholders.
For $5.5 billion, Skilled HealthCare Group and Genesis Healthcare Group merged in an all-stock deal to create one of the largest U.S. operators of long-term care facilities.
Skilled Healthcare shareholders will own 25.75% of the equity in the combined company. Genesis shareholders will own the other 74.25%.
Under the Genesis HealthCare name, the combined company will have approximately 95,000 employees and operate more than 500 nursing homes, assisted-living facilities and rehab centers in 34 states.
As a result of President Barack Obama’s Affordable Care Act tying payments to improved patient outcomes and cuts in Medicare insurance reimbursement rates, hospitals and healthcare providers are being driven to consolidate.
George V. Hager Jr., CEO of Genesis, and who will be the CEO of the combined company, said the merge evolved as a result from the challenges in the post-acute health care industry created by a, “constantly changing health care environment.” The deal will allow Genesis, a privately held company, enter the public domain and enter new markets with its sub-acute, long-term care facilities and rehabilitation services.
Skilled Healthcare CEO, Robert Fish, who happens to be the former CEO for Genesis said he believes “scale and the ability to drive efficiencies will be critical to future growth,” stressing the need for consolidation.
“The combination will expand our core business lines, significantly diversify our markets, provide opportunities for increased efficiency and enhance our collective ability to provide the highest quality patient care,” Fish said.
The deal is expected to close in early 2015 after it passes regulatory approval.
A filing with the Securities and Exchange Commission denotes, Genesis obtained $1.15 billion in debt financing commitments to cover the costs of the merger with Skilled Healthcare Group, which includes paying Skilled Healthcare Group’s debt.
Steve Madden shoes have adorned the shelves of many a closet wall since the monster company was founded in 1990. Now the mogul of the shoe industry has walked themselves into a $60 million deal with privately held Dolce Vita Holdings, Inc.
Steve Madden has established itself in the design industry as fashion-forward in the design of footwear and accessories for women, men and children. The company not only markets products under its own brand, it is the licensee of various brands. Steve Madden, Ltd. also designs and sources products under private label brand names for various retailers.
Founded in 2001, Dolce Vita Holdings, Inc. is a company specializing in the design, sourcing and sale of branded and private label footwear. The company sells its fashion-forward footwear to wholesale customers, including department stores, boutiques, and online on their website. Last year Dolce Vita had net sales of around $111 million.
Edward Rosenfeld, Chairman and Chief Executive Officer of Steve Madden commented, “We are very pleased to complete the acquisition of Dolce Vita, a brand that is known for its chic, modern styles and strong following among trend-conscious consumers. We see significant opportunity to expand the business by combining Dolce Vita’s strengths – which include an outstanding brand and superior design – with our proven business model and infrastructure. We are particularly pleased that the founders Van and Nick will remain with Dolce Vita and continue to lead the business into its next phase of growth.”
Van Lamprou and Nick Lucio, Founders of Dolce Vita, shared similar sentiments, “We are excited to be joining the Steve Madden family. We are very proud of what we have built at Dolce Vita over the last 13 years, and we believe that Steve Madden is the perfect partner to help the brand reach its full potential. We look forward to working with the Steve Madden team to take Dolce Vita to new heights in the coming years.”
Home startup SmartThings, backed by PayPal co-founder Max Levich, was acquired by Samsung for $200 million last week. Samsung won the deal over several other prospects. Chief Executive Officer for SmartThings, Alex Hawkinson, says SmartThings “will operate as an independent company within Samsung’s Open Innovation Center group.”
The platform for SmartThings enables the consumer to control their appliances, electronics and such, like lights and garage doors, over the internet and through a phone application.
SmartThings, which is owned by the Physical Graph Corporation, raised over $15 million in venture capital from Greylock and Russian investor Yuri Milner, to name a couple.
“SmartThings has created a remarkable universe of partners and developers and now has the most engagement of any smart home platform in the world,” according to David Eun, Head of the OIC. “Connected devices have long been strategically important to Samsung and, like Alex and his team, we want to improve the convenience and services in people’s lives by giving their devices and appliances a voice so they can interact more easily with them. We are committed to maintaining SmartThings’ open platform, fostering more explosive growth, and becoming its newest strategic partner.”
SmartThings has received criticism for the buyout. Many folks expressed concerns like whether or not SmartThings’ new parent company might shut down any iOS development. Another concern was whether or not SmartThings would drop its free service and elect to start charging monthly fees.
All of these concerns were met with a resounding, “no,” from founder of SmartThings, Alex Hawkinson, over social media.
According to David Eun, “With Samsung behind us, we will be able attract more device makers and developers to unlock the limitless possibilities of the consumer Internet of Things. We are thrilled to become part of the Samsung family and continue our goal in making every home a smart home.”
Quenching its thirst for the energy-drink market, Coca-Cola Company agreed to a 16.7% stake in Monster Beverage Corp. for $2.15 Billion. By the close of the New York stock exchange, Monster rose 30% and Coca-Cola gained 1.7%.
Coke’s attempts to tap into the energy-drink market have fallen flat compared to its counterpart. Coke energy brands earned $330 million last year while Monster raked in a whopping $2 billion. The deal included the transfer of Coca-Cola’s lack luster energy drinks Full Throttle, NOS, Play, Mother and Burn to Monster. In turn, Monster will transfer its Hansen’s natural sodas and juices, Peace tea and Hubert’s lemonade to Coca-Cola.
Both companies will share marketing, production and distribution. Coca-Cola will expand its distribution of Monster globally to give the brand more exposure around the world. In effect, Coke could be transferring approximately another $1 billion on value to Monster.
80% of Monster’s sales come from the U.S. This leaves Coca-Cola with the opportunity to take advantage of an untapped market, internationally. Analyst, Bonnie Herzog, had this to say about Coke’s potential with the energy-drink, “Monster is relatively underpenetrated internationally… The partnership will significantly accelerate Monster’s international market share.”
In addition, Coca-Cola can increase its stake in Monster to 25 percent, but is prohibited from increasing its stake beyond that point for four years without Monster’s approval.
This isn’t Coke’s first deal this year. Back in January, Coke acquired 10% stake in coffee company, Keurig Green Mountain for approximately $1.25 billion and later increased its stake to 16%. According to John Sicher, editor of Beverage Digest, “What Coke is doing is both carefully and dramatically beginning to use deals to enhance its growth. It’s a smart and conservative way to branch out into these areas.”
Looks like the saucy icon, Carmen Miranda, will have to up her charisma as tensions rise over Chiquita Brands International Inc.’s rejection of the Curtrale and Safra Group’s joint takeover bid .
“Cutrale-Safra is disappointed that the Chiquita Board simply rejected the Cutrale-Safra proposal without making any effort to reach out to the representatives of the Cutrale Group or the Safra Group to explore the Cutrale-Safra proposal.”
Now, Cutrale and Safra are trying to convince shareholders to reject Chiquita’s planned takeover of the Ireland-based company, Fyffes. Chiquita countered and contends that the Fyffes deal was the best course for shareholders.
Combining the tropical fruit company (Fyffes) and Chiquita has the potential to produce $4.6 billion in annual revenue and ship approximately 160 million boxes of bananas each year, jumping ahead of its competitor, Dole Food Company.
Not to mention the money that could be saved by moving Chiquita’s headquarters to Ireland. This is known as an inversion and many companies have resorted to buying out companies abroad for the expressed purpose of saving huge sums of money in taxes. However, Chiquita insists the merge of the companies is not tax-driven and that they will continue to be a U.S. taxpayer with their U.S. operations still subject to U.S. taxes.
Chiquita is firm on their plans to forgo the Cutrale and Safra deal to pursue the $1.07 billion all-stock deal with Fyffes. The Fyffe’s deal would create the world’s largest banana company and they would be aptly renamed ChiquitaFyffes.
The combined company will also look to expand to Asia and the Middle East where banana consumption is low.
Wall Street Journal’s MoneyBeat reporter, Paul Vigna asks, “Why this deal? Why now?” To which Peter Evans, reporter from London, explains, “Demand for bananas is going up, fueled by improvements in shipping and technologies, so bananas can be stored and transported to market in 20 days now, whereas previously it was around 45. That is facilitating this demand. But, also, as you’d expect with something like this, an emerging market demand where previously bananas couldn’t be shipped is driving that market. It makes sense for the two companies, which have quite a diverse spread of joker fees between them, to do this deal right now and ride that wave of expanding banana demand.”
You may have heard of Electrolux, the company sells under brands such as Frigidaire, AEG and Zanussi as well as its own name. It is one of the world’s largest manufacturers of household appliances and is looking to acquire its conglomerate counterpart in the appliance business, General Electric.
A Swedish company, Electrolux, sells about 50 million products per year. Based in Stockholm, they sell home appliances in 150 markets. Approximately half their sales are from the United States, Brazil and the Americas. Acquiring General Electric would seem the most natural move for the thriving corporation and one that would benefit both parties considering the direction G.E. is headed.
Sales for Electrolux reached $15 billion, last year. The company also posted better quarterly profits than expected. To compare, G.E.’s revenue for 2013 in their appliance and lighting departments was $8.3 billion.
While G.E. and Electrolux are in talks, no deal is being levied at this juncture. G.E. was noted to have stated they are “evaluating a wide range of strategic options for our Appliances business, including discussions with Electrolux and other interested parities.” Those other interested parties being Quirky, who was reported by Bloomberg News to have said they would team up with private equity firms to acquire a majority stake in the company.
While General Electric became recognized for its appliances and became a household name for many in the U.S., in recent years the company has shifted focus to its core industrial businesses. A strategy sought after by G.E.’s Chief Executive Officer, Jeffrey R. Immelt, post the 2008 financial crisis that rocked the company hard.
The company’s most notable sales for their perimeter businesses include the NBCUniversal to Comcast for close to $30 billion. Then in June, they sold their Scandinavian consumer finance business to Spanish lender Banco Santander for $935.6 million.
The Internet startup, Artspace.com that sells works by contemporary artists, was acquired by Phaidon today for an undisclosed sum. Phaidon is a publisher of art and design books and has an online presence of its own, but has been looking to expand.
Artspace.com is renowned as the premier marketplace for contemporary art. The Wall Street Journal has boasted, “Artspace…offers a more populist approach to collecting…by leveraging an extensive network of partnerships with galleries, museums, & foundations…”
Another benefit to Artspace is their coveted mailing list which includes 244,000 email addresses. “Companies can make money online by expanding their customer base or by offering more exclusive and expensive artworks,” said Clayton Press, art professor for New York University. And Artspace has that customer base as Catherine Levene co-founder of Artspace pointed out, “Artspace has the base: its mailing list includes 150,000 active art collectors. […] There’s purchasing power behind the lists.” NYU’s Press estimates there are 150,000 to 200,000 collectors globally who spend more than $50,000 year on contemporary art.
The owner of Phadion, Leon Black, is a noted art collector as well and joins the flock in the latest gust of mergers that have been shaking up the internet art market.
Just last week, Demand Media Inc. paid out $17 million in cash and stock for Saatchi Art, which offers works by 45,000 artists online. Sotheby’s, an online auction and private sales of fine art is said to be forming a partnership with Ebay Inc. to expand their customer base. In 2013, Amazon Art began selling art from international galleries.
In an interview with Levene regarding the acquisition she sounded enthusiastic and positive, “It’s the perfect home for Artspace,”. The company’s mission “has always been to make great art accessible to a wider audience. It’s exciting to have a partner who shares our vision.”
While Levene will remain CEO for Artspace, her co-founder, Christopher Vroom will pursue other interest after the transition.
M
onths ago, Donald Sterling achieved infamy and national attention after making disparaging comments to his girlfriend about blacks—all recorded on tape. The, now former, Clippers owner earned himself a lifetime ban from the league and was fined $2.5 million for his uncouth and defiant behavior.
The N.B.A.’s Commissioner, Adam Silver, gave Donald’s wife Rochelle permission to sell the team before Donald was officially removed by vote. That’s when former chief executive of Microsoft, Steve Ballmer, stepped in.
Finalizing the deal for a whopping $2 billion, outbidding his opponents by $400 million, Ballmer became owner of the L.A. Clippers. Clippers fans and the team are thrilled about the transition. Head coach for the team, Doc Rivers, had this to say about Ballmer, “This is an amazing new day in Clippers history. I couldn’t be more excited to work together with Steve as we continue to build a first-class, championship organization.”
Ballmer shares a passion for basketball and for winning, two things not seen in Sterling. Sterling had a penchant for ruining teams. With Sterling came the ominous sign of bad things to come, even with the fortune of having some of the most reputable players in the league such as Blake Griffin and Chris Paul. Ballmer’s sheer presence will give the team the positive push they’ve been lacking all this time.
The optimism for the Clippers’ new owner was palpable at a news conference last month to introduce Lakers Coach Byron Scott when Magic Johnson said, “You’re talking about a guy who wants to win, who loves basketball. He’s going to do everything he can to put them in a championship situation because he wants to win so bad.”
In the meantime, Sterling continues to hangs on like dead weight with his $1 billion antitrust suit against the league and Silver, to which the N.B.A filed a counterclaim to recover damages from the “incalculable harm” Sterling’s recorded remarks caused the league.
Sexy and classy high-end lingerie company, Agent Provocateur, could fetch close to $337 million for 3i group, which owns a majority stake in the company. 3i has asked Goldsachs to open the
kimono and run a potential sale of the chain.
Last year, Neiman Marcus and Saks were sold in multibillion dollar transactions. Agent Provocateur is looking to add to this short list of luxury retailers ready to sale their companies to investors. Investors are clamoring for the opportunity to take advantage of the sales, as wealthy customers are still willing to spend despite economic setbacks.
Agent Provocateur was birthed in London’s Soho neighborhood. The company soon established itself as both a novelty and undergarment store and sells both sexy and saucy items. The owners unabashedly create alluring, but scantly clad advertisements that have been banned from television from time-to-time—only adding to the company’s enticing reputation and mystique.
Now operating in 31 countries, from Hong Kong to Milan, the retailer earned itself over $6.3 million during its last fiscal year. That’s more than double its earnings from the year prior.
As they look to continue their global expansion in locales that include San Francisco, Los Angeles, Toronto and Calgary, Agent Provocateur collaborated with A-list celebrities Penelope and Monica Cruz for their 2013 lingerie line. The July, 2013 launch of the collaborative efforts proved to be an enormous success, according to the directors of the esteemed company. The momentum from the 2013 lingerie line success carried the company into 2014.
Attesting to the company’s continued success and appeal, to potential buyers, the directors of Agent Provocateur had this to say, “While the global economic outlook still remains unsettled, particularly in Europe, the directors are satisfied that the business is in a very robust position to move forward.”
The potential for rising healthcare costs has only grown over the last four years due to a sudden, yet persistent influx of hospital mergers and acquisitions.
In 2012, the number of deals had nearly doubled since 2009. The last time the market has seen a surge in hospital mergers of this magnitude was in the ‘90s.
The driving force behind the consolidations, among other things but most of all, is Obama’s Affordable Care Act. Experts say the law is transforming the economics of healthcare, pushing hospitals to join forces in a strategy to increase their size, thus ramping up their negotiating pull with insurers. In addition, the mergers reduce costs and in turn can prevent compromised care.
Managing director for BMO Capital Markets, David Johnson—a company responsible for advising nonprofit health systems—had this to say, “There’s immense logic for them to become large super-regional systems, even some national systems.” Consulting firm, Booz & Company echoes Johnson’s sentiments, predicting 1000 of the nation’s 5000 or so hospitals are likely to seek out mergers within the next five to seven years.
Hospital executives say the changes to the health care industry under the ACA have created a struggle for many hospitals. For starters, patient admissions are declining and payments from the federal government are lowered. Exacerbating matters, hospitals are experiencing principal changes in how they are paid under the ACA and private insurers.
Instead of being paid according to the number of admits (the more the better) and the number of tests and procedures accrued, hospitals bear some responsibility in the total cost of patients’ care.
But, with the growing number of mergers there’s concern the lack of competition will lead to another rise in healthcare costs. This has gone largely unchallenged by federal regulators.
Last year alone, 98 hospital and health system conglomerates formed. 70 of which the buyer was a nonprofit acquiring a nonprofit, 17 were for-profits acquiring nonprofits, and the remaining 11 were for-profits acquiring for-profits. And the marathon of mergers and acquisitions continues…
Square acquires Caviar, how’s that for a deal? The names are as attractive and clever as the businesses themselves. The entire Caviar team will join Square in a $90 million, all-stock acquisition is the perfect accompaniment to Square Inc.’s expansive and comprehensive business. The entire Caviar team will join Square.
Square offers a wide range of services including, but not limited to, Square Reader, a reader application for internet accessible devices allowing businesses to use them to accept credit cards for purchases; Square Cash, offers a convenient way to send and receive money; Square Market, enables users to easily access and shop online; and Square Order, an application allowing people to place online orders at their favorite restaurant or grocer for pick-up at a predetermined time with an 8% transaction fee.
Caviar is the perfect adjunct to Square Order (and vise versa) and will prove to be very lucrative as both companies already have a strong customer base in this niche market.
Caviar, a San Francisco, CA based company, is a food delivery service business. The rapidly growing company delivers for local restaurants that don’t otherwise offer delivery to their customers. The company has grown by over 500% year after year and has an 80% return customer rate.
Now that Square has acquired the delivery service, Square will be able to offer their customers the convenience of a one-stop-shop for both purchasing and receiving food from their favorite restaurants—giving Square an edge over their competitors DoorDash, Munchery, Sprig, Postmates and Spoonrocket. Combining the key elements of the two businesses will prove to be the perfect solution for people and businesses looking for a quick and easy way to have a a delicious lunch or dinner.
The co-founder of Caviar, Jason Wang, says the sale will help Caviar’s scale rise.
Brrring…Brrring…Brrring… “Hello, this is T-Mobile. No, we won’t be accepting your $15 billion bid to acquire our company, Iliad.”
Billionaire Xavier Navier, owner of the French telecommunications company Iliad, made an all-cash offer last Friday to acquire 56.6% of T-Mobile US for $15 billion. T-Mobile rejected the offer, and is standing firm, holding out for a potentially greater payout through Sprint who’s also expressed interest (June of this year) in acquiring the company to the tune of $32 billion.
Iliad has developed and maintained enormous success in the French ISP market. When Iliad branched out into the mobile services arena, the company went from no customer base to having over 8.5 million subscribers in just 2 years. They accomplished this by offering affordable non-contractual packages which is something customers clamor for.
Niel has reportedly been attempting to tap into the US market for some time now. He’s also been credited with starting a pricing war in France by undercutting his competition with Iliad’s affordable and quality service. Many consumers welcome the idea of Iliad making its way over the pond.
Still, it’s a no go for T-Mobile whose sights are set on Sprint, as Sprint acquiring the company would turn them into a serious and leading competitor to AT&T and Verizon Wireless.
Two months ago, in a tentative deal between Sprint and T-Mobile, Sprint would pay around $40 per share for T-Mobile, valuing the company at $32 billion. They would also assume T-Mobile’s net debt of close to $9 billion. The deal continues to going through some legal wrangling before a deal is solidified.
In 2013, Verizon Wireless led the industry with 119 subscribers and AT&T was a close second with 109 million. Combining Sprint’s 54 million subscribers with T-Mobile’s 45 million would make a sizable presence within the industry.
After acquiring 55 percent of the European pharmacy retailer and wholesaler Alliance Boots for $15 billion, Walgreens stood to save a projected $4 billion in corporate taxes by changing their corporate domicile. However, due to some harsh criticism, Walgreens has decided against emigrating corporate headquarters abroad.
The number of corporate inversions has grown exponentially over the past decade. By changing their corporate domicile, through an acquisition abroad, U.S. corporations save 75 to 50 percent in corporate taxes. The idea seemed all too enticing for Walgreens’ CEO Greg Wasson to pass up. Yet, after more careful thought and analysis, Wasson decided the backlash would not be worth the potential savings.
In a recent statement, Wasson determined an inversion would likely “put the company in a significantly worse position than if we had not inverted at all, such as a protracted controversy with the IRS” and “litigation which could go on for three to 10 years.”
More important to their consideration was the risk of “consumer backlash and political ramifications including the risk to our government book of business;” (Walgreens receives millions of dollars in revenue from federal Medical and Medicaid programs.)
One of Walgreens’ staunchest critics of the tax inversion consideration was Senator Dick Durbin, D-Ill. In a letter to Wasson, Durbin urged him to reconsider an inversion warning him that the company would lose a significant customer based and support if Walgreens was “to turn its back on the United States.”
When the Senator heard of Walgreens’ decision to keep corporate headquarters in Illinois, he was thrilled. On the other hand, Walgreens experienced a 14 percent drop in stocks by the close of the Dow, Wednesday, due to that decision. The stock drop reflects a significant reduction in projected earnings as well as shareholders’ doubts the Wallgreens-Boots Alliance strategy is good for long-term, sustainable growth.
The subprime mortgage crisis of 2007 sent several U.S. banks—and citizens—into financial ruins. However, the few financial institutions left standing are prospering more than ever since 2007. Two of those institutions are CIT and OneWest banks
Two weeks ago the lender group CIT reached a deal to buy its parent company OneWest for $3.4 billion. The deal is expected to double the size of its commercial bank to $28 billion in deposits and $67 billion in assets.
OneWest was formed by a group of investors who sought to salvage the remnants of the failed lender IndyMac, and it’s paid off. When the investors formed OneWest Bank in 2009 with $1.55 billion of their combined dollars, they didn’t anticipate looking at earning close to $2 billion in dividends in such a relatively short amount of time.
CIT’s CEO, John A. Thain, has experienced a complete turn around since recent years and beyond. During the banking crisis, Thain sold Meryll Lynch and was ousted from the bank. CIT was proving to take a similar downturn when the company filed for bankruptcy in 2009. Now, CIT has grown to the higher rankings of importance within the industry.
Another OneWest hedge fund investor, John A. Paulson, is reaping a significant financial comeback. Mr. Paulson was responsible for collecting close to $4 billion by betting against failing home mortgages and contributed to the 2007 financial crisis. He’s since invested $400 million for 24.9 percent stake in the company and will receive a notable return.
Interestingly (or not), the public’s perception of the (now) fledgling banking institution is not met with a congratulatory “attaboy” and support. Instead, many share the same and similar sentiments to these found over social media after hearing word of CIT’s acquisition of One West:
“Great idea. John Thain bankrupts Merrill Lynch and is fired by Ken Lewis CEO of Bank of America and now Thain is getting back into the Banking Business with another virtually Bankrupt Company CIT. If it were not for taxpayers neither of these companies would still be in existence. So now they are out buying a hedge-fund run OneWest Bank. This is how things are done on Wall Street! What a joke!”—Sherry
“I’m so happy to hear that the Corporate Persons who crashed the economy “have moved on, and even prospered.”
Too bad about you human persons. You don’t count in our new feudalism.”—masaccio
“The banks, the bankers, the brokers and the wheeler-dealers did fine on the backs of the taxpayer and those ordinary citizens who were prudent, didn’t use their homes as ATMs and didn’t buy more than they could afford are still taking it in the neck.”—Ronald
It appears “winning” is only half the battle. CIT and OneWest have a long way to go before they gain public support and a positive and, more importantly, trusting public opinion.
Stretching out the Dollar…Tree to a respectable $8.5 billion is spending wisely for Dollar Tree’s Chief Executive Officer, Bob Sasser. In a deal officiated today, July 28, 2014, Dollar Tree acquired larger company and rival Family Dollar for $74.50 a share.
Sasser is calling the deal a, “transformational opportunity with the acquisition of Family Dollar, stores [Dollar Tree] will become the leading discount retailer in North America with over 13,000 stores in 48 states and 5 Canadian provinces.”
Family Dollar stockholders will own around 13 percent and around 15 percent of Dollar Tree’s outstanding common shares. This morning, shares spiked more than 24 percent and are headed for a record high.
Considering the two chains have over 13,000 stores combined as well as combined revenue of $18 billion per year, the acquisition may very well be a bargain.
Unlike Dollar Tree, Family Dollar had items for over $1 while Dollar Tree’s merchandise never exceeds $1.
Like many discount retailers, Family Dollar suffered a hard blow due to the recession and has struggled since, even after attempting to boost sales by lowering their all ready low prices. Family Dollar went on to cut out some jobs and shut down poor performing stores with little return.
Family Dollar began receiving push from prominent Wall Street investors in the company as early as 2011. Nelson Peltz, with his 7.9 percent stake in the company, was one of the first to try and persuade Dollar Tree’s CEO, Howard Levine, to pursue a deal. Levine resisted.
Levine changed his mind after investor Carl Icahn, with his 9.4 percent stake in the company, wrote to Levine in early June, 2014. In the letter Icahn urged him to put the company up for sale immediately and demanded that three of his representatives be added to Family Dollar’s board. Levine finally agreed.
According to the deal, Levine will join Dollar Tree’s board and continue running Family Dollar stores and report back to Sasser.
Family Dollar is a chain of stores, having around 8000 locations in US. They have 1300 employees and the variety store chain is the ins largest retailer in this business sector.
Dollar Tree is a chain of discount stores that sell things for a one dollar maximum price. They own around 4880 stores in Canada and US. They operate under the following names : Dollar Tree, Dollar Bills and Deal$. It’s target is low-end market.
The latest Senate hearing on the exponential growth of corporate inversions was proven unsuccessful as Congress couldn’t agree on new legislation to curb the phenomenon. Thus, companies continue in search for tax breaks by migrating overseas in droves. Added to the list of possible inversions is the Hospira pharmaceutical company acquisition of Danone’s medical nutrition business for about $5 billion.
Danone is a French consumer group with four business lines: fresh dairy products, early life nutrition, waters, and medical nutrition. Since Hospira is only looking to acquire a division of the business, if the deal were to go through, it would be considered a spinversion.
A spinversion is when a foreign company spins off a portion of their business to allow it to be inverted.
Other examples of American to foreign spinversions are Salix Pharmaceuticals’ merge with the Irish unit of Cosmo Pharmaceuticals of Italy. Another spinversion is Mylan Pharmaceuticals’ acquisition of a division of Abbott Laboratories.
Danone has been interested in selling its medical nutrition business for some time and has had talks with Nestle and the German healthcare group Fresenius. Yet, it is uncertain if Danone is in talks with any other companies besides Hospira at this time.
Acquiring Danone’s medical nutrition business would be idyllic for Hospira on a couple fronts. For starters, Hospira is a pharmaceutical company known for selling injectable and generic medications as well as medical equipment. Adding Danone’s current medical nutrition business would broaden Hospira’s scope as the medical nutrition business is a comparable discipline.
Another advantage to an inversion between Hospira and Danone would be a tax break for Hospira—which is significantly lower in France than the U.S. where corporate tax is 35%.
For Danone, selling the medical nutrition division of their company would allow them to focus on their food and consumer brands the company is more widely known for.
The possible deal looks promising as it would serve as a tremendous benefit to both parties.
History seems to have repeated itself for Equinox and Millennium Partners when Equinox negotiated its second-biggest acquisition deal for the remaining Sports Club/LA gyms and Reebok Sports Clubs/gyms for $110 million. Ironically, Equinox’s biggest acquisition deal was 3 years ago when they acquired many more of Millennium Partner’s high-end fitness clubs to the tune of $130 million.
Equinox has paved and pioneered its way through the luxury fitness club business. They’ve established and acquired some of the poshest clubs in the industry. Most notable are The Sports Club/LA clubs in Los Angeles; Beverly Hills, CA; Irvine, CA; and New York City’s Rockefeller Center. The same year they bought the former Millennium Partners clubs, they bought SoulCycle, a trendy and popular indoor cycling studio with clients that included Brooke Shields and Chelsea Clinton. Now Equinox will be adding to their treasure chest of red-carpet fitness centers The Sports Club/LA gyms in New York and four other cities, as well as the Reebok Sports Club/NY gym on the Upper West Side of Manhattan.
Since 2011, Equinox is operating 29 SoulCycle gyms, and started an inexpensive Blink Fitness brand. Both businesses are as strong as ever according to Equinox’s Chief Executive Officer, Harvey Spevak. The current plan is for Equinox to continue focusing on advanced technologies for their high-end gyms and to offer the highest quality, luxury experience for their members. Many of the clubs offer a beauty bar as well as cafes offered healthy, yet delicious, snacks breakfasts, lunches and dinners.
It seems to go without saying, Equinox has positioned itself as the caviar of fitness clubs as Harvey Spevak proudly boasts of a gym experience that is “…much more sophisticated than anyone else in our industry.” And there is still so much more to come from this thriving company.
Allergan, the maker of Botox and Juvederm, is holding its own in Valeant Pharmaceuticals’ hostile $53 billion takeover. In an effort to dissuade shareholders from selling to Valeant, Allergan contends Valeant has an unsustainable business model and has proven itself to be a poor supervisor of the companies it acquires.
In a complaint filed with the Security and Exchange Committee (SEC) in the United States and Canada, Valeant Pharmaceuticals alleges Allergan was making false statements about its business to drive down its stocks, while Allergan’s top shareholder, Capital Research and Management Company, dumped its shares.
Valeant is upset because they claim Allergan stated, “Valeant continues to cherry pick data that fails to provide analysts and investors with the financial information necessary to truly evaluate Bausch & Lomb’s performance. Valeant’s latest attempt to hide the ball appears to involve focusing investors on growth from medical device products rather than on pharmaceutical products that continue to stagnate or decline.”
The complaint is aimed at the latter part of the statement, “…pharmaceutical products that continue to stagnate or decline”, as Valeant claims Allergan was informed Bausch & Lomb’s sales had improved by 12 percent over the previous year.
Bank of Montreal Capital Markets analysts say, “As for news today that Valeant has complained to regulators regarding alleged statements about parts of Valeant’s business, we believe it will have no impact on Allergan’s defense as these types of complaints often occur from hostile bidders.”
Thwarting Valent’s takeover plans further, Allergan’s sales rose by 16 percent (to $1.8 billion) on Monday, July 22. In an effort to streamline, Allergan’s plans to cut about 13 percent of its workforce, 1,500 jobs, which resulted in a 2 percent stock increase for the company.
Should Valeant succeed in the takeover they would become the largest company in all of Canada.
On Tuesday, July 22 the Senate Finance Committee held a hearing with regard to the problem of American companies relocating their headquarters abroad. With a 35 percent corporate income tax in the U.S., it is no wonder there are currently 8 corporate inversions pending in the U.S.
Harvard Business School Professor, Mihir Desai, says to prevent corporate kingpins from changing their domiciles, “First, our rate has to be brought in line with what the rest of the world is. Second, in conjunction with that we have to move away from this worldwide tax regime that we have. Those are the underlying drivers of these inversion transactions and those are the underlying drivers of why firms are undertaking transactions that are probably not efficient so we need to think about those two changes…”
At the senate hearing, Senator Ron Wyden, Democrat of Oregon called for retroactive legislation to extinguish tax benefits to the companies that have inverted over the past year. This would affect companies who have finalized their deals including AbbVie and Medtronic’s plan to acquire Covidien. The U.S. Department of Treasury estimates such legislation would save the U.S. economy from losing $17 billion over the next decade.
Still, while neither Republicans nor Democrats approve of company inversions and what they do for the economy, Congress has yet to meet a consensus on what should be done. Most legislative proposals have been punitive in nature. In the meantime, corporate inversions keep multiplying and gnawing away at the U.S. economy.
Between 2012 to present, there have been a total of 20 inversions and pending inversions, which is unprecedented. To compare numbers, between 2005 and 2011, there were a combined total of 6 corporate inversions. Rounding out the current list of pending inversions are the AbbVie, Mylan, Salix, Auilium, Medtronic, Chiquita Brands, Horizon Pharma, and Applied Material takeovers.
Adding to Murdoch’s collection of riches, to possibly take another stab at a Time Warner takeover, is another £5Billion ($8.3 billion) from BSkyB. The London-based pay TV company has pitched in to acquire its sister companies Sky Italia and majority share of Sky Deutschland, creating a newly formed Sky Europe.
The BSkyB takeover is broken down as such: BSkyB will pay £2.5 billion for Sky Italia and £2.9 billion for its stake in Sky Deutschland. 21st Century Fox would receive payments for the combined totals of the payouts and BSkyB would also transfer its 21% stake in the National Geographic Channel. The company would also offer Sky Deutschland’s minority shareholders a €6.8 ($9) per share (↑1.4%).
In total, BSkyB will have earned itself ~20 million customers and dominate Europe’s four biggest pay TV markets.
BSkyB’s CEO, Jeremy Darroch, had this to say about his acquiring its two sister companies, “The three Sky businesses are leaders in their home markets and will be even stronger together. By creating the new Sky, we will be able to use our collective strengths and expertise to serve customers better, grow faster and enhance returns.”
James Murdoch, Rupert Murdoch’s potential successor as CEO for Fox, was BSkyB’s CEO at one time and mirrored Darroch’s sentiments in a statement made back in May of this year. He felt the company needed to resolve its European pay-TV strategy, and having three separate firms is not optimal.
Bottom line, Murdoch has his sights set on Time Warner and is looking for revenue to make that deal happen. In addition, the expectation is that the pay TV channels will be more profitable run as one company as well as potentially saving £200 million by the end of the second financial deal.
On July 8, 2014, CEO Jeff Bewkes of Time Warner rejected Fox CEO, Rupert Murdoch’s $80 billion and $85/per share bid to acquire Time Warner Inc. Merging the two media go
liaths would serve as the biggest media deal in more than a decade.
Fox, with its impressive resume of networks including Fox News and National Geographic Channels is as recognizable a media mainstay as Time Warner with its highly lucrative cable channels HBO, TNT and TBS. That said, $80 billion doesn’t come close to a figure favorable enough to see Bewkes negotiate a deal.
The take over attempt comes at a time when other media proprietors in the content distributor sector are expanding through their own acquisitions and moguls like Murdoch see an emerging opportunity for content providers.
One of the greatest advantages for Fox in acquiring Time Warner would be in controlling the more highly valued sports programs Time Warner has rights to; most notably are the men’s NCAA basketball tournaments and MLB baseball games. This would add to Fox’s repertoire of sporting events they telecast—which includes the NFL regular season and playoff games, baseball’s World Series and college football.
In effect, Time Warner’s move to monopolize such a large part of the content provider realm has caused quite the buzz in comments over social media, as this is likely only the beginning of future bids in Fox’s attempt to establish themselves as the media giant of giants. Many over social media feel the acquisition would only prove beneficial for media conglomerates and a costly setback for consumers who desire diversification in a Free Press society.
Pharmaceutical research and development company AbbVie Inc. (ABBV) acquired Ireland-based Shire Plc. (SHP)—a pharmaceutical company specializing in treatments for rare diseases—to the tune of $53 billion last Friday (July 18, 2014). Shire holders will get cash and stock valued at 52.48 pounds (89.52 dollars) a share.
The acquisition foreshadows the latest trend for companies, particularly in the pharmaceutical industry, to shift their corporate domiciles abroad to enjoy U.S. tax relief. Naturally, this has caused congressional unrest for the hit they will receive, now that their tax revenue from AbbVie has, literally, set sail.
The higher corporate tax rate in the states is pushing companies overseas, as AbbVie’s Chief Executive Officer Richard Gonzalez duly noted, “Today we’re at a disadvantage compared to our foreign competitors, and that’s the debate we should be having around inversions and our tax code.” By 2016, AbbVie’s acquisition deal and change of legal residency will have lowered their tax rate from 22 percent to 13 percent.
The favorable tax climate in Europe has U.S. lawmakers anxious to close the tax break loophole by making inversions difficult, if not impossible, in the future. Until then, U.S. companies will be rushing to set sails and sales offshore.
The acquisition still needs to be approved by the NBA’s Board of Governors but still Ballmer says that he will be honoured to have his name submitted to this Board as he “loves basketball”!
The bid for the team was formed by 2 groups : a group of LA investors that offered 1.2 billion $ and a group led by Davod Geffen (media) that offered 1.6 billion $ and that included Oprah Winfrey and Larry Ellison from Oracle
Merrill Lynch was the financial advisor in the deal.
Apparently a lot of billionaires want to buy NBA teams but the offer is very limited and this is a key driver for this huge price.
Sterling paid around 12 million $ in 1981 for the team that was located then in San Diego.
Forstmann Little & Co (New York) announced the sale completion of 24 Hour Fitness, worldwide company, to a investment group led by Ontario Teacher’s Pension Plan and AEA.
24 Hour Fitness is a leading fitness chain, with 4 million subscribers and around 20 000 employees. They run around 400 clubs in the United States. Ted Forstmann, the founder of Forstmann Little died in November 2011 and 24 Hour Fitness was the last big ownership that his company controlled. Forstman Little bought 24 Hour Fitness back in 2005 and the fitness chain was led by Elizabeth Blair, an ex Yahoo exec that became the CEO in September 2013.
Headquartered in San Ramon, CA, 24 Hour Fitness is a leading health club industry pioneer, serving nearly four million members and employing 21,000 fitness professionals in more than 400 clubs across the United States. The company was acquired in 2005 by Forstmann Little, the private equity firm founded and led by Theodore Forstmann. 24 Hour Fitness is the last significant portfolio company controlled by the firm following the death of Ted Forstmann in November 2011.
During its final year under Forstmann Little’s ownership, 24 Hour Fitness was led by former Yahoo! executive Elizabeth Blair. Ms. Blair joined 24 Hour Fitness in February 2013 and was named Chief Executive Officer in September 2013. Ms. Blair announced that she will not be remaining with the company following today’s sale.
A source told Club Industry that the total debt put on 24 Hour Fitness will be $1.35 billion (including an $850 million term loan and $500 million in bonds). Ontario Teachers and AEA Investors are investing $585 million—30.2 percent—in equity, adds the source. The sale is a 7.75 times EBITDA (earnings before interest, taxes, depreciation and amortization) multiple transaction based on $250 million in EBITDA generated by 24 Hour Fitness.
Moves fitness app was sold to Facebook. This app lets user monitor their physical activity, calories burned, etc with the help of a smartphone.
Moves app is able to identify and record what you do, for example : cycling, running, walking. The app lets you see the distance, duration, number of stept and even calories burned. The app works 24/7 in the background of your phone and it identifies your status if you keep the phone in your pocket, bag, hand.
This app was developed by ProtoGeo Oy, starting with Jan 2012 from Finland, more specifically Helsinki. Their investors : Profounders, AJP Holding, Lifeline Ventures, Jyri Engestrom, Juha Lindfors, Tekes.
The big advantage of this app is that it only uses a state of the art activity recognition formulas so no bracelets or any other kind of additional devices are necessary and right now because of the iPhone 5S new processor called M7, the app is using very little power. The M7 processor constantly measures and tracks motion data, keeping the information accessible to any apps that may need it. That means fitness and lifestyle apps no longer need to be active or running in the background to track user movements throughout the day.
Facebook and ProtoGeo kept the transaction price confidential.
Titan Aerospace was finally bought by Google, not Facebook … what a surprise. Google confirmed the transaction but did not mention the value. This is an effort to connect some areas from some countries that do not have Internet access at this point. Of course, these new areas will be a very good engine for growth in the following years.
Some models produced by Titan are able to fly continuously for up to five years without landing. Initial reports were indicating that Facebook will buy this company but in the end they had to settle for another drone maker, Ascenta.
This is a race that is trying to connect around 2 thirds of the world population, population that is not currently connected to the internet in any way.
Twitter just bought Gnip, an important provider of social data that was already in a long business relationship with them.
About Gnip
Gnip mentioned that until now it processed about 2.3 trillion tweets. This acquisition will bring more value to Twitter shareholders and also a lot of synergies. By getting access to resources and infrastructure to be able to go to the next level, also Gnip will most probably be able to offer higher quality services to Tumblr, WordPress and other clients.
Also, GNIP CEO believes that this acquisition will send a clear signal that social data investments are solid.
The offer is actually the only offer that Mt. Gox has ever received since the bankruptcy procedure started.
The buyers were not available to comment. Company name is Sunlot Holding and the investors behind it are Brock Pierce and William Quigley.
Most probably they want to buy the company for 100$ and then turn it around.In the paperwork, the investors mentioned they were in discussions with Mt. Gox since Jan 2013.
Holcim and Lafarge which are currently no. 1 and no. 2 on the cement market had some discussions about a possible merger. The new company will probably have $40 billion in sales and will be able to get a lot of cost cutting opportunities in energy cost, production with no overcapacity, etc. Lafarge previously purchased Orascom in 2008 and Holcim also did an acquisition of Aggregate Industries in 2005. But, both these deals were done before the financial crisis.
Regarding regulatory authorities, nobody knows what might happen. Most probably they will encounter some problem in France, Span and Germany as it is highly probable that the authorities will also impose a asset sale of some factories.
Both companies have a total of 136000 employees (Lafarge = 65000 and Holcim = 71000).
Facebook will buy Oculus VR, the company that makes virtual reality headsets. The deal is in the range of $2 billion. Oculus is tho’ a company that is in a start-up mode and that didn’t make a consumer product until now.
It’s headsets (Oculus Rift) are mainly used right now by video game developers to help them to change the way video games are being played.
As this will be a hot gaming thing in the next years, Sony is about to launch a VR headset as well for the PS4 console.
The future of Oculus after the Facebook acquisition? Here are some pointers :
Also, Mark Zuckerberg believes that virtual reality will be the next thing after mobile devices.
Deal mathematics : $400 million in cash and 23.1 million shares of Facebook common stock (valued at around $1.6 billion). The agreement also provides for an additional$300 million earn-out in cash and stock based on the achievement of certain milestones.
Disney took a decision to become a major online distributor by buying Maker Studios from Youtube. Maker Studios is one of the biggest video production companies on Youtube (Google) and it has as a main target the younger generation. Company was founded in 2009. (Reuters)
Maker Studios works on production and distribution had an audience of 380 million subscribers and a total of 5.5 billion monthly views and this will be priced at a maximum of $950 mln according to Disney, depending on some milestones.