How are large corporations able to execute Bn $ acquisitions in a few months

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  • #36336
    Mohamad Alchalabi
    Participant

    It was very interesting to me realize how Microsoft acquired LinkedIn within 6 months (from showing interest to closing the deal), in a deal at the size of nearly $25 Bn. This was accomplished despite having competition from 4 other large corporations. Two interesting details I noticed were how the CFO once revised the offer by nearly $2.5 Bn within less than 24 hrs (no need for formal board approval) and how the board was able to meet to approve the deal one day after both managements agreed to the price.
    How different is Microsoft’s acquisition process from other companies?

    #38991

    Companies Like Microsoft Plan and Do their homework months or Years Before the day that you learn their intention
    Companies Like Linkedin and other similar, they cannot stay for a long time on the way deciding who and how much, since Valuations are Affected
    Companies like Microsoft and other have their own business intelligence units.
    Big negotiations, are not different than small so a 10% change in price is not that big deal
    Representatives of Big Companies have a predetermined range for every issue they negotiate, including price,so this change was in the limit that did not require further approval.Board of Directors have to aprove the deal.

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