Top M&A

Part
01
of three
Part
01

Top M&A Firms in the U.S. - Rows 2-6

Morgan Stanley, Goldman and Sachs, Lazard, Centerview Partners and Perella Weinberg Partners are the five of the top US-based M&A firms that were involved in merger and acquisition and restructuring of Consumer Electronics companies. The top five companies alongside their website link, revenue, and any examples of deals they have made with consumer electronics companies have been compiled in the attached spreadsheet.

METHODOLOGY

We first looked for the most powerful M&A firms in the world. For each company, we checked whether they are US-based. After that, we checked if the companies had dealt with consumer electronics or not by looking up a list of top consumer electronics companies, and then additionally checking for the most valuable mergers and acquisitions in the consumer electronics field. Based on that, we were able to identify the top five companies (based on revenue) from the list of M&A firms and cross-reference them with electronic companies they worked for. Some of the information might be older than two years, particularly of the mergers, but they are relevant and thus are still included in this brief.

OVERVIEW

1. Morgan Stanley's revenue is $38.4 billion.
They brokered the Microsoft-LinkedIn Deal and are known to be the company that is the sole adviser of Microsoft, which is identified as one of the top 10 consumer electronics companies.

It is important to note that in this deal, LinkedIn was advised by Qatalyst Partners and Allen & Company, which aren't included in this list but may be a valuable piece of information for future research.

2. Goldman and Sachs' revenue is $32.4 billion.
The company was the lead adviser in the Johnson Control-Tyco Deal and also benefited from the Microsoft-Yahoo Deal that ultimately didn't happen but Goldman and Sachs still made a profit based on their services.

On the other hand, Centerview Partners and Barclays were financial advisers to Johnson Controls. Centerview Partners is identified as number 4 according to the revenue in this list.

3. Lazard's revenue is $2.7 billion.
Lazard was the lead adviser for Tyco in the Johnson Control-Tyco Deal, alongside Goldman Sachs.

4. Centerview Partners' revenue is $60 million.
Centerview was involved in the Johnson Control-Tyco Deal as well as the Google-Motorola deal.

5. Perella Weinberg Partners' revenue is $10 million.
They were involved in the deal for restructuring Delphi Technologies.

An additional company that could be included is Moelis and Co with a revenue of $720.1 million. As the Microsoft-Yahoo deal was never closed, they only offered services but didn't broker a deal.

All the information has been compiled in the attached spreadsheet.
Part
02
of three
Part
02

Top M&A Firms in the U.S. - Rows 7-11

The top M&A investment banks/firms for consumer electronics (aside from what has already been provided in the first request) are BofA Merrill Lynch ($18.60 billion), Deutsche Bank Trust Company Americas ($672 million), GCA Advisors ($65 million), Qatalyst Partners Limited ($33.963 million), and Mill Road Capital ($11.4 million). These figures, together with company names and examples of deals with consumer electronics companies are provided in the attached spreadsheet.

METHODOLOGY

In order to determine the considered "top M&A firms for consumer electronics" in the United States, I first looked for the top M&A advisors by deal value, however, while these firms are considered top in the overall deals, there is no indication of their connection to consumer electronics companies. I then directed my search for top M&A investment banks in the retail and consumer goods, however, it is also not possible to pinpoint which of them are top in the consumer electronic deals specifically. I then came across a report released by Cogent Valuation in 2017 that listed the major and recent M&A transaction deals based on major shares in the consumer electronics industry. Using this list, I checked which firms are based in the United States and searched each individual transaction for the names of their M&A financial advisors during the deals. Cross-referencing with the top M&A investment banks list, I managed to identify the top M&A firms in the United States that have worked with consumer electronics companies based on their revenues.

Please kindly note that the provided revenues do not represent the consumer electronics transactions specifically, but for the company's business transactions as a whole. The breakdown of the revenue for consumer electronics transactions is not available in the public domain. The deal values are also not focused on e-commerce CE companies but the companies involved in the deals mentioned can also be represented by brick-and-mortar stores. Some of the information is older than 2 years, but as they contain information about relevant mergers, I still include them in this brief.

TOP M&A FIRMS FOR CONSUMER ELECTRONICS IN THE UNITED STATES



Bank of America Merrill Lynch was TDK USA’s exclusive financial advisor during its transaction deal in May 2017 to acquire InvenSense, a provider of MEMS sensor platforms, at a deal value of $1.3 billion. TDK Corporation is a leading electronics company operating globally. BofA Merrill Lynch's revenue as of 2017 was $18.60 billion.


Deutsche Bank served as a financial advisor to Sigma Designs, a solution provider for the connected home appliances including leading Internet of Things (IoT) smart home technology Z-Wave, during its transaction deals with Silicon Labs in December 2017.

The transaction was valued at $7.05 per share or approximately $282 million in total. Sigma Designs also contracted Deutsche Bank Securities as a financial advisor to "assist in exploring strategic alternatives to enhance stockholder value." In 2017, Deutsche Bank Trust Co Americas generated a revenue of $672 million.



Tessera Technologies, a company focused on mobile computing and communications, memory, data storage, and 3D-IC technologies, acquired DTS, Inc. at a value deal of approximately $850 million. DTS is an audio solutions company geared for mobile devices, cinema, automotive, etc. The transaction took place in December 2016. During this transaction, GCA Advisors acted as exclusive financial advisor to Tessera. The investment bank has generated a revenue of $65,023,405 in 2016.


Qatalyst Partners was InvenSense’s exclusive financial advisor during its acquisition deal with TDK Corporation in May 2017. InvenSense, a provider of MEMS sensor platforms, was acquired by TDK Corporation at approximately $1.3 billion. TDK Corporation is a leading electronics company operating globally. In addition to this, Qatalyst Partners was also hired by Motorola, together with Centerview Partners, as their advisors on a "deal expected to generate $30 million to $35 million for the bankers." In 2011, Qatalyst was ranked 12th place in the tech, media, and telecommunication sector deal tables. Currently, Qatalyst Partners recorded a revenue per annum of $33.96 million.


Mill Road Capital, a private investment and equity firm, acquires Skullcandy, a headphones manufacturer and world's creator of audio experiences, for a price of $6.35 per share in cash, or an equivalent $196.6 million on September 2016. Mill Road Capital focused its business on "investing in and partnering with publicly traded micro-cap companies in the U.S. and Canada". Currently, the investment company recorded a revenue per annum of $11.40 million.

CONCLUSION

Details of the above-findings were entered in rows 7-11, columns A-E of the attached spreadsheet including M&A firms' company name, revenue, and examples of deals with consumer electronics companies.

Part
03
of three
Part
03

Top M&A Firms in the U.S. - Rows 12-16

We have added five new firms to the M&A spreadsheet, the firms have been placed in revenue order (we have updated the order of the list); each of the new firms are highlighted in green. These firms are all based in the U.S., have top revenues, and have dealt with consumer electronics companies.

Five of the top M&A firms that have made deals with consumer electronics companies are (in order of revenue):
1) Lazard ($2.34 Billion)
2) Evercore ($1.6 Billion)
3) Moelis & Company ($684.6 Million)
4) Centerview & Partners ($60 million)
5) Livingstone ($25 million)

Top M&A Firms in the World

We found a comprehensive list of top M&A Firms in the world. We analyzed the list for U.S. owned firms and then found five top U.S. firms that were yet to be a part of your spreadsheet. The five firms that deserved to be added to the spreadsheet were Lazard, with an annual revenue of $2.34 Billion; Evercore, with an annual revenue of $1.6 Billion; Moelis & Company, with a revenue of $684.6 Million; Centerview & Partners, with a revenue of $60 Million; and Livingstone, with a revenue of $25 Million.

Deals with Consumer Electronic Companies

Each of these five M&A firms have dealt with consumer electronic companies.

1. When Toshiba sold Westinghouse to a Canadian investment firm for $4.6 billion, Lazard oversaw the transaction; this deal both gave Westinghouse a fresh start and provided some financial relief towards Toshiba investors.

2. Evercore was the firm Samsung utilized to facilitate their $8 billion deal in securing Harman International Industries; this deal allowed Samsung to become a "tier-1 Parts Supplier" to car makers who implement Harman Infotainment components.

3. Moelis & Company were the lead adviser to Ultra Electronics as they acquired the Electronic Products Division of Kratos Defense & Security Solutions; this was a $265 million-dollar transaction that enhanced Ultra's portfolio and established their place in the enhanced warfare market.

4. Centerview & Partners were the financial advisers for the agreement to combine Xerox with their Fuji Xerox joint venture; this deal delivered over $1.7 billion in total cost savings and increased the company’s global reach which expanded their revenue. The new financial flexibility provided by this deal made $2.5 billion in dividends for Xerox shareholders.

5. Livingstone advised the sale of Tech for Less (a Colorado-based company which refurbishes consumer electronics) to supply chain solutions company ModusLink for $30 million. This integration allowed for a predicted annual revenue exceeding $40 million.

Conclusion

All requested details for the M&A firms Lazard, Evercore, Moelis, Centerview, and Livingstone have been entered in the attached spreadsheet.
Sources
Sources

From Part 01
From Part 02