Mergers and Acquisitions

While many deals fell through in 2016, observers expect strong 2017

By Brendan Releigh, Contributing writer

Two of the biggest deals in Central Pennsylvania over the last year were deals that were never completed. And they both involved organizations in Derry Township.

In October Penn State Health Milton S. Hershey Medical Center gave up on its plan to merge with Harrisburg-based PinnacleHealth System.

Two months before that, Illinois-based Mondelez International, maker of the Oreo, abandoned its takeover of The Hershey Co.

But failed mergers weren’t confined to Central Pennsylvania.  Continue reading

A supporting cast is key

By Rebecca Hanlon, Contributing writer

While buyers and sellers play the starring roles in any merger or acquisition, they are each supported by a cast of professionals who dive into the details of a deal to make sure their clients get the most out of the process.

These advisers include business brokers, attorneys, accountants and appraisers who navigate the inner workings of a business, examine industry standards and work out final numbers to help buyer and seller reach agreement. Without them, negotiations could sour, or the buyer or seller could get a bum deal. With them, the negotiation can become a smooth process on the way to a successful sale.

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Why to buy – and when to walk

By Jennifer Deinlein, Contributing writer

In some cases, businesses grow by introducing new products, adding employees or expanding infrastructure. And in others, those same benefits can be realized by purchasing another company.

Companies need to evaluate which is best for them, said Matt Roberson, a principal at Sparks, Md.-based SC&H Capital. He oversees the Central Pennsylvania market for the company.

But an acquisition is usually quicker, he said: “There’s … risks, but the reward would be higher because I can do something faster or sooner.”

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