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Welcome to the Deal Economy 2012 simulcast. If you could not join us at the New York Stock Exchange November 30 or December 1, click on the player to the right to access archives of all the panels and roundtables.
Thanks and mark your calendar for next year's Deal Economy 2013, hosted at NYSE on November 28 and 29, 2012
Click here to watch highlights of the Deal economy simulcast
Dana White - the president of the Ultimate Fighting Championship - grew up in Las Vegas and says he barely graduated from high school. Now, he runs a multibillion dollar business, he grew it organically with some select acquisitions. The enthusiastic executive of the UFC gave the final word of the night at the Deal Economy 2012 on Dec. 1, 2012 at 6 p.m. EST.
He got into the UFC in the early days, as a manager and trainer of fighters when UFC was a small business and he had a gut feeling that the sport of fighting between two individuals in an octagon shaped ring would have mass appeal.
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For a group of middle-market private equity investors
speaking at The Deal Economy 2012 panel "The Midcap Machine: Revving Up The
Growth," it's less about how they are dealing with a competitive environment
for acquisitions than it is about how to avoid competition.
"I think there's always competition if you're at the
starting line with all the other runners," said Steven B. Klinksy, Managing Director, Founder and Chief Executive of New Mountain Capital, a firm focused
on "defense growth industries." "The companies that we've
bought, we've been able to get there before the process began. Or we convince
them that we have the capital and we can write the check. There's a skill to
avoiding competition." continue reading
Gary Loveman, chairman, CEO and president of Casesars Entertainment Corp., has helped grow his company to be the largest casino operator in the world. He's had the unique distinction of being CEO of Caesars when it was a public company and also since it went private in 2006. Loveman gave his outlook in the gaming sector in a one-on-one interview with CNBC host Scott Wapner at The Deal Economy 2012 in the New York Stock Exchange at 4:45 p.m. EST. continue reading
The Deal LLC's Editor-at-Large Matt Miller stressed that emerging markets no longer are synonymous with just China and India. Marchick replied, "We've been in India and China for more than a decade. The third- and fourth-tier cities in China are where we're focused to invest -- they're growing fast. And we're the first large PE firm investing in Sub-Saharan Africa; it could be the next China." He continued with a little pointer: "You should look to see if people educated here at Harvard or Yale are going back to their home countries, say, Nigeria."
GE's Duncan O'Brien said, "GE has been growing up in the past few years in the emerging markets and is still looking to put better talent on the ground there. We're looking for plug-and-play deals so origination is a challenge." continue reading
The range of what constitutes a big deal has changed recently with the numbers decreasing since 2006 and 200. Robert Uhlaner, Senior Partner at McKinsey & Co., spoke at The Deal Economy 2012's research spotlight "The Big Deal about Big
Deals" about these changes and how organizations should pursue and view M&A.
One of Uhlaner's sources for discussion was a recent survey his firm completed, "Organizing for M&A." continue reading
In this session, Farrington praised SecondMarket opening up capital streams for in-between companies. Evans gave some tips on IPOs, and there was mention of where the IPO market is headed with differing viewpoints.
Teitelman first asked, "How does the development of a secondary market for companies to remain private affect the IPO process, venture investing and particularly the development of a thriving tech sector?"
Silbert thinks the IPO markets have been dying for the past 10 years, which Ethridge doesn't quite agree on. Silbert said, "Since the '80s or '90s, we've reversed from low caps being the majority of IPOs to the minority." continue reading
After a lunch full of talk about deals, everyone at The Deal Economy 2011 has settled back in for the next panel. And with Groupon's IPO, Zynga starting its roadshow, rumors of a $10 billion Facebook IPO in the second quarter and Yahoo!'s potential suitors valuing it around $25 billion, this is a rousing conversation.
The panel featured Mike Brown, Director, Corporate Development at Twitter, and Aaron Crum, Principal, Corporate Development, Google. The moderator, David Kirkpatrick, is the author of "The Facebook Effect" and CEO, Techonomy Media. continue reading
The global economy is still reeling from the stunning bankruptcy of Lehman Brothers Holdings Inc. and the sale of Merrill Lynch to Bank of America Corp. in 2008 for their reckless investing in credit default swaps and toxic mortgages. Now with the recent bankruptcy of MF Global because of bets on risky European debt, investors have directed more ire toward Wall Street.
The big question: Is Wall Street an engine of growth, or is it another big gamble?
The big question is Wall Street an engine of growth or is it another big gamble.
The two opposite viewpoints were discussed in The Deal Economy 2012's town hall discussion "Wall Street: Engine of Growth or Trillion-Dollar Casino" at 11 a.m. EST amongst a packed house of around 250 people at the New York Stock Exchange
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As the 30-year retrospective of dealmaking continued, CNBC's Kayla Tausche turned the conversation to politics, asking, "When did political parties in power start mattering?" Michael D. Fascitelli, president, CEO and trustee, Vornado Realty Trust, said, "I used to worry about who was mayor of New York; you look at schools, crime management, etc. We've been blessed with Guiliani and Bloomberg, but in the last two or three years, I've been more worried about Washington. So far, I wouldn't give those guys a grade A." He also noted cash-heavy corporate balance sheets, saying the environment is too uncertain for real spending. continue reading
At 10 a.m., two well-known 1982 graduates of Harvard Business
School sat down for a 30-year retrospective of dealmaking. They were
Michael D. Fascitelli, president, CEO and trustee, Vornado Realty
Trust; and
Steve Pagliuca, managing director, Bain Capital LLC. The moderator was Kayla Tausche, a reporter for CNBC.
Fascitelli made a quick point about leverage and its beginnings: "Real estate was the original LBO market. The early '90s was a crisis time, but that's when I got my start there. When we were buying, we were scared, but they turned out great." continue reading
The roundtable continued in the early hours with Chancellor Leo Strine, Delaware Court of Chancery, switching topics to antitrust regulation, saying that we are straight up in the U.S. He added that there is a protectionist feel in the European Union.
Moderator Tyler Mathisen put forth to the panel: In the U.S., antitrust is about antitrust and not protectionism -- look at the Anhueser deal. Strine offered this response: "We blocked China some time ago, but let's be real about them: It's not a capitalistic society. Example, let's say you have an acquisitive country and an open one where M&A goes one way. We're like people that want to do natural bodybuilding with people that get to do steroids." Drapkin said one needed to look at Yahoo! and Jack Ma. "The U.S. can't just sit back and play by everyone elses rules." continue reading
When it comes to hostile takeovers, Robert A. Profusek, who was also a panelist at The Deal's webcast "Finetuning your Due Diligence Playbook" in August, said there are going to be more hostile deals partly because of lower valuations and cash-rich strategics looking to put their money in play. However, Shafir said doing a hostile deal has its hurdles, such as a growing shareholder democracy movement and the de-staggering of boards that are focusing on good governance. continue reading
Leo E. Strine thinks the European Union will become more restrictive, then said, "Look at the U.K. in wake of the Cadbury deal. In the U.S., the force of regulatory change has opened up our economy. Boards are structurally sounder, and new compensation systems make M&A more friendly. With that said, in the short term, we have to do M&A, but we haven't dealt with the long term -- fundamentally sound growth. The biggest regulatory risk is that we're in globalized capital markets. Dodd-Frank didn't cover everything. Market swings are wild. In 10 to 20 years, if you don't have a system that produces genuine growth -- like selling products -- you have a real problem. Oracle has had success with M&A, but the target side worries me. What does it say about entrepreneurs being so willing to sell?" continue reading
After a chilly walk around the NYSE and some friendly chatter with security, The Deal Economy 2012 roundtable guests set up shop by the NYSE boardroom at 8 a.m. sharp. Mathisen kicked things off by asking Richard Jeanneret about E&Y's recent survey statistics about deals in 2012. "M&A attitudes are surprisingly robust here, but I'm skeptical about surveys in general," he said.
Jeanneret said it's telling because the survey was taken about two to three weeks after the S&P downgrade of U.S. debt. He said, "Corporate cash piles had record levels."
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The day starts early with a roundtable at 8 a.m., moderated by CNBC's Tyler Mathisen and including Jones Day partner Robert A. Profusek; Mark Shafir, head of global M&A at Citigroup Inc.; and Leo E. Strine Jr., chancellor, Delaware Court of Chancery; among others.
Around 10 o'clock, a couple well-known 1982 graduates of Harvard Business School will sit down for a 30-year retrospective of dealmaking. They are Michael D. Fascitelli, president, CEO and trustee, Vornado Realty Trust; and Steve Pagliuca, managing director, Bain Capital LLC. continue reading
From the European debt crisis to bankruptcy filings by AMR Corp. and MF Global Holdings Ltd. to the flaring of Occupy Wall Street and Standard & Poor's downgrading everyone, the past year has added a greater need for a meeting of minds, making our flagship event of the year that much more epic. Veteran dealmakers from strategics, private equity, law and various other deal community heavyweights like NYSE Euronext's Duncan Niederauer and Scott Cutler are gathering at The Deal Economy 2012 today at the New York Stock Exchange.
There will be a bell ringing at the NYSE, followed by high-profile roundtable (available by simulcast for The Deal Pipeline subscribers), including Dell Inc. M&A chief Dave Johnson, who is one of the bell ringers. Other highlights include a town hall and a special onstage interview between Niederauer and Stefan Selig, executive vice chairman, global corporate and investment banking, Bank of America Merrill Lynch. continue reading
