EdgePoint Newsletter
March 2016

Deal Rumors: Deny, Deflect, and Disclose
By Tom Zucker, EdgePoint

Rarely am I able to suggest that anyone follow the example of a politician, but these unique creatures show ways that people often handle sensitive communications during an M&A process. During every campaign cycle, we observe numerous candidates perfecting the time-tested techniques of denying and deflecting challenging questions. . Although I despise politicians' verbal maneuvering and lack of transparency, I respect how they achieve their main objective of preventing discussion of a topic that they want to avoid. With this background, below I consider several methods that people use to handle the most sacred truth

The "Catch 22" of High Synergistic Fit in Merger and Acquisition Transactions
By Paul Chameli, EdgePoint

By design, merger transactions can have significant strategic value to two parties with different yet complementary operating models and philosophies. While these operating and cultural differences can yield a stronger and more complete organization, they can also make for a difficult transaction process—which in turn may put at risk the great strategic potential contemplated by the combination in the first place. This article illustrates this common transactional phenomenon and proposes several techniques to ensure that tension inherent in opposing but complementary business philosophies does not prevent a stronger combined entity.



The 2015 global M&A market

The 2015 global M&A market set transaction volume records by exceeding $5 trillion for the first time. The U.S. accounted for over $3.8 trillion of the transaction volume which broke the previous record set in 2007. The strong business confidence, low interest rates, favorable tax environment, and an abundance of strategic and financial capital chasing transactions contributed to the strong valuations and higher volume.

EdgePoint anticipates the strong M&A market to continue into 2016. EdgePoint's view of the market is echoed by other leading financial firms including Ernst &Young who noted in a recent survey that "60 percent of executives are expected to carry out acquisitions in the next 12 months, up from 40 percent a year earlier." 2016 is expecting a wave of consolidation to take place across numerous industries in the US.

EdgePoint Welcomes Fred Leffler as Vice President

EdgePoint is pleased to announce the addition of Fred Leffler. Fred joins EdgePoint as Vice President and will be primarily responsible for managing the strategy and execution of merger, acquisition and financing transactions.

He has over 25 years of experience as a transactional attorney, including 20 years in private practice, leading transactions for his closely-held and entrepreneurial clients on both domestic and international matters.


2015 Year in Review

EdgePoint is proud to announce another year of successfully serving our clients' transition needs. This year's transactions represented a wide range of clients in a variety of industries. EdgePoint successfully sourced premium buyers for our clients including international strategic buyers, management groups and financial buyers with strategic interests.