Commercial Awareness Discussion Thread

Jaysen

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  • Feb 17, 2018
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    Hi, yes!

    In the UK, there is the public to private takeover battle of Signature Aviation. It's a PE buyout but it involves a public company, and you can read about it here: https://www.ft.com/content/e35c9245-dd4d-4fea-a640-3b69faf76705

    In Europe, a big-ticket deal is Couche-Tard's attempted acquisition of Carrefour. It's politically contentious as Carrefour is a major supermarket chain in France, and the French Finance Minister has already spoken publicly about the deal. You can read more here: https://www.ft.com/content/4e8a2ac5-bfa6-4da6-81b5-44d8238644a2

    Aside from that, I'd read up on shareholder activism in the UK and US. Given deal activity was through the roof at the end of 2020 and the shock of the pandemic has settled, activist investors are starting to carve out stakes in public companies. A notable example has been Intel; hedge fund Third Point pushed for a change in strategy, which resulted in the CEO stepping aside. The articles are below:
    Intel: https://www.ft.com/content/d6e30aca-e72b-4c49-8e8a-1bb25918c5c4
    UK shareholder activism: https://www.ft.com/content/86ab653e-380b-462e-8dbc-4e2bfb516504

    Hey Raam, I'd be curious to know what your business reading is like at the moment? Do you still make time to read the FT each day etc.?
     

    Raam

    Legendary Member
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    Apr 4, 2019
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    Hey Raam, I'd be curious to know what your business reading is like at the moment? Do you still make time to read the FT each day etc.?

    Hey Jaysen, of course!

    I read the FT and Finimize every morning. In the FT, I read the Due Diligence newsletter and skim through the headlines. I also read 2-3 articles from any topics/ journalists I've added to myFT that pique my interest. If there are any major IPOs/ M&A deals going on, I see if there's anything about it on Bloomberg's YouTube channel.

    I definitely recommend subscribing to a FT newsletter/ daily briefing of interest. There's a good variety across different topics, such as technology, oil & energy and sustainable finance.
     
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    Jaysen

    Founder, TCLA
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    TCLA Moderator
    M&A Bootcamp
  • Feb 17, 2018
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    Hey Jaysen, of course!

    I read the FT and Finimize every morning. In the FT, I read the Due Diligence newsletter and skim through the headlines. I also read 2-3 articles from any topics/ journalists I've added to myFT that pique my interest. If there are any major IPOs/ M&A deals going on, I see if there's anything about it on Bloomberg's YouTube channel.

    I definitely recommend subscribing to a FT newsletter/ daily briefing of interest. There's a good variety across different topics, such as technology, oil & energy and sustainable finance.

    Very interesting and credit to you for keeping up with it. I think I need to re-instate a routine like this!
     

    E123456

    Valued Member
    Nov 19, 2020
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    Hi again @Raam

    As one of my commercial topics I'm preparing for an interview I wanted to talk about SPAC mergers (in particular Nikola). The only problem is the firm I'm interviewing at is a UK firm. As long as I link it back to the UK market and talk about why the different legal environment makes SPACs less favourable would that be ok? Or should I look to talk about something a bit more UK relevant?
     

    gricole

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  • Jul 6, 2018
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    I was just preparing this for an application but I thought I'd share it as it seems like a trend on the rise for this year, particularly with the fewer investment opportunities now: https://www.ft.com/content/ee914ea4-4ad9-4eec-97c3-95af841122bf

    Basically private equity firms have been selling companies from their portfolios to themselves. By doing so they comply with the pressure to sell but also find ways to keep onto attractive assets. This strategy, however, becomes morally questionable if PE firms use it to "get rid" of portfolio companies they can't sell otherwise. Also, it is interesting to see what the valuation processes of such deals will look like. :)
     

    Raam

    Legendary Member
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    Apr 4, 2019
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    Hi again @Raam

    As one of my commercial topics I'm preparing for an interview I wanted to talk about SPAC mergers (in particular Nikola). The only problem is the firm I'm interviewing at is a UK firm. As long as I link it back to the UK market and talk about why the different legal environment makes SPACs less favourable would that be ok? Or should I look to talk about something a bit more UK relevant?

    That's completely fine. Whatever your analysis and opinion, make sure you have evidence to back it up :)
     

    Naomi U

    Legendary Member
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    Dec 8, 2019
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    How will a firm creating a new consulting arm impact upon the work of trainees? As it drives to become an all in one services provider?
    I think its effects can be twofold. From a client perspective, the firm is likely to experience a greater range of clients who perhaps prefer the one provider option. From a work perspective, this broadens the type of work. So whilst you will be likely to still engage in research and drafting based tasks, the scope of the work is likely to be broader as you will be looking beyond the legal lens to include more corporate advisory and corporate governance based tasks.

    Hope this helps :)
     
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    Simba281

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    Sep 4, 2020
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    Hi guys! In regards to reading news articles in the ft for example- how do you go about analysing them? I know there won’t be a set structure but I’m not sure what I should be thinking about when I do read them
     

    Naomi U

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    Dec 8, 2019
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    Hi guys! In regards to reading news articles in the ft for example- how do you go about analysing them? I know there won’t be a set structure but I’m not sure what I should be thinking about when I do read them
    Hi @rianna2810

    Just linking a recent response I made to this which may help. Best of luck!
    Hi @Lawgirl123

    I don't think there is a specific answer to this question as I think what interviewers are looking for here is your reason why. I think I would advise following a few stories/deals that you are particularly interested in. When you are researching these stories/deals ask yourself:

    What market/ industry was this achieved in, and what are the current trends e.g. is this an emerging market, a declining market?

    Was this the first deal of this kind and why? When was the last/similar deal completed and what were the reasons for the time lag?

    Was this deal particularly more complex and why? (Consider cultural, financial, environmental, tax and competition implications)

    I think if you approach your preparation for this question from this angle, this will really help to tailor your answer!

    Hope this helps and best of luck!
     
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    AA99

    Active Member
    Jan 26, 2021
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    Hi all,

    I've been reading that some companies are bypassing the traditional method of listing via an IPO and are instead listing via the SPAC route.

    I understand that at the time of listing SPACs have no business operations and are formed for the purpose of acquiring another company, but I'm a bit confused so I wondered if anybody could explain why they're increasing in popularity now specifically, the benefits/drawbacks of listing this way, and whether this trend is likely to continue?

    Hope that makes sense and thanks for any help👍
     

    Yoryis

    Active Member
    Jan 25, 2021
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    Ha same - I'm trying to understand why/how a broker should 'lend' its shares out in the first place.
    Why would you have your shares just sit there? By lending them you can get some extra income in the meantime (ie the fees payable by the borrower). Of course, there is the risk of not getting the shares back because the counterparty is unable to buy them back (what happened), but in normal times this is a rather remote risk.
     
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