Mergers & Acquisitions

A Priiva client was contemplating the acquisition of a peer in their industry. This acquisition would have combined the two leading and publically traded firms in the market and created a powerful force indeed. The client’s incoming bias was to initiate a bid for this company and dominate the market.

Priiva’s analysis however demonstrated the unintended consequences of making such a bid. There was significant risk that the client’s action would trigger an auction of the acquired company – an auction the client may not win. Worse yet, the winner of that auction would likely be an eventual auction bidder for the client. In the end, the client decided to not initiate a bid for the company as the risk of being outbid and degrading their auction scenarios was too great.
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