Mergers & Acquisitions, the oldest trade publication serving the dealmaker community, has been acquired by Middle Market Information LLC from Arizent. Started in 1965 as Mergers & Acquisitions: a Dealmakers Journal, M&A’s print and digital magazine, news website, daily email newsletters and social media channels inform private equity firms, strategic acquirers, investment banks and other deal intermediaries on breaking news, emerging trends, and rising stars in the industry. Middle Market Information, a B2B data and information company, says M&A will retain its core values of providing quality intelligence to discerning professionals in the dealmaking community. “We are delighted to have an opportunity to invest in and grow Mergers & Acquisitions, a brand that’s been trusted by dealmakers for over 55 years,” said Middle Market Information CEO Jim Beecher. “This industry needs an independent voice that can deliver thoughtful analysis and deep coverage of both private equity and corporate deal activity. Through our website, www.themiddlemarket.com, and our publication, we will build upon the foundation of the brand and deliver an even better experience for the community in the coming months and years.” See full coverage: Middle Market Information LLC buys Mergers & Acquisitions publishing brand. DEAL NEWS Ascena Retail Group Inc., owner of the Ann Taylor and Lane Bryant clothing chains, will close more than half its stores and hand control to its lenders after the Covid-19 pandemic tipped the debt-laden retailer into bankruptcy. Read the full story by Bloomberg News: Ann Taylor parent goes bankrupt, plans to shut over 1,000 stores. Unilever signaled the pandemic hasn’t damped the company’s appetite for acquisitions and reported better-than-expected revenue, fueled by consumers buying hand sanitizers and ice cream for home consumption. The maker of Magnum bars and Ben & Jerry’s ice cream has still been looking for purchases over the past six months, CEO Alan Jope said in a Bloomberg TV interview. Read the full story by Bloomberg: Unilever CEO signals M&A appetite, as hand sanitizers help sales. KPS Capital Partners is buying AM General LLC from MacAndrews & Forbes Inc. The target, known for its Humvee Brand, produces automotive supplies. Kirkland & Ellis advised KPS. Incline Equity Partners-backed Continental Batteries has purchased automotive aftermarket battery distributors Battery Joe and Battery Solutions. Industrial Opportunity Partners-backed SRR Holdings Inc. has acquired Southern CaseArts, a manufacturer of merchandising cases for grocery and convenience stores. Kainos Capital-backed Olde Thompson has acquired Gel Spice. The latter produces spices, seasoning, and bakery ingredients. Osceola Capital-backed I&I Sales Group has acquired Apex Reps, a provider of outsourced sales and marketing services for janitorial and sanitation manufacturers in the Midwest. Fruition Partners has formed a new dental pratice platform and the PE firm will invest in dental offices across Florida. Bryan Cave Leighton Paisner advised Fruition. The Riverside Co. has invested in Buildout, a Software-as-a-Service provider for marketing and customer relationship management to commercial real estate brokerages. Autodesk Inc. (Nasdaq: ADSK) is buying construction software firm Pype. Shamrock Capital, a media, entertainment, and communications-focused PE firm, has raised its second fund at $400 million that is focused on content acquisitions. The funds’ investment strategy is to acquire existing entertainment intellectual property rights across filmed entertainment, television programming, music publishing rights, recorded music masters, video games, and other forms of entertainment content. DEAL TRENDS About 63 percent of tech executives and entrepreneurs expect to pursue add-on acquisitions, according to Stifel's July tech follow-up survey. About 75 percent said their investors are supportive, and 30 percent have raised capital in the previous quarter. In regards to the elections, 44 percent of survey respondents said the November elections will impact their strategic planning. PEOPLE MOVES Brian Friedman has joined William Blair as a managing director where he is leading the origination and execution of late-stage private placement and crossover financings across all growth industries. He was previously with Paragon Biosciences. Laurence Vigeant-Langlois has joined AE Industrial Partners as a managing director. She was most recently with GE Aviation. Michael Helmer was hired by law firm Squire Patton Boggs as a partner where he is focusing on M&A. He was most recently with DLA Piper. Omar Divina has been named CEO at Accordion's software business Maestro. EQUALITY AND INCLUSION Ten private equity firms have pledged to each create and post five board seats to make them available to minority and women candidates, participating in an initiative to increase diversity on company boards of directors. Aurora Capital Partners, Clearlake Capital, Genstar Capital, Grain Management, Hellman & Friedman, Hg, Insight Partners, K1 Investment Management, TA Associates and Vista Equity Partners have committed to the board initiative announced by Diligent Corp., provider of company governance software and a portfolio company of Clearlake and Insight. Read our full coverage: Clearlake, Insight, Vista and other private equity firms create 50 new board roles for diverse candidates. Portfolia Rising America Fund "invests directly in early and growth-stage companies in the U.S. led by people of color and/or LGBTQ founders, or products and services that cater to these markets," says investment partner Lorine Pendleton in a Q&A with Mergers & Acquisitions. "These are founders, ecosystems, products and services historically overlooked by traditional venture capitalists but positioned for significant growth and profitability." The firm is led by five women of color. In addition to Pendleton, the firm's leaders are: Noramay Cadena, co-founder and managing partner of MiLA Capital; Daphne Dufresne, a managing partner of GenNx 360 Capital Partners; Juliana Garaizar, an angel investor; and Karen Kerr, executive managing director at GE Ventures. "We believe that strength lies in differences and seek out entrepreneurs and startups who are using shifting demographics and their own diversity of experience and thought to create innovation that offers outsized opportunities for returns and impact." The fund had its first close earlier in 2020 and has made two investments to date: The first investment is in MoCaFi, a fintech startup founded by Wole Coaxum, a former JPMorgan Chase commercial banking executive and entrepreneur, who is African American. "MoCaFi offers a mobile-first banking platform that brings digital banking products to underbanked or unbanked communities (an 88 million U.S. market), allowing them to build credit and financial mobility," Pendleton explains. The second investment is in a women’s tele-medicine network. For more, read the full interview: Led by 5 women of color, Portfolia Rising America Fund backs mobile banking and women's telemedicine startups. "As stewards of capital we have an outsized role in determining which businesses to support," says Mina Pacheco Nazemi of Barings Alternative Investments. "As asset allocators, we need to hold ourselves accountable. I can do more. Will you join me?" Dealmakers begin to weigh in, as Gerge Floyd's death sparked two weeks of Black Lives Matter protests against police brutality and racial injustice. Read the story: "Justice doesn’t just happen. It requires action, dedication and accountability," says one private equity investor. CORONAVIRUS IMPACT The negative impacts of the Covid-19 pandemic cannot be overstated and have touched nearly every industry and person in the world. In sports, these negative impacts have been most readily observed through the temporary shutdown of both professional sports, and more locally, recreational team sports. However, Covid-19 has had an unexpectedly beneficial impact on one sector of the sports industry - individual outdoor sports. With many gyms still closed or operating at reduced capacities and many fitness classes on pause, sports enthusiasts are rediscovering the appeal of outdoor activities such as golf, cycling, hiking, fishing and more, all of which can be enjoyed while maintaining appropriate social distancing. Read the full story: Coronavirus has produced an outdoor sports boom that will spur M&A. Under normal circumstances, M&A demands a robust set of tools and services to be successful. In today’s environment in which the stakes have been raised by the coronavirus crisis, professional help from service providers is more important than ever. Private equity firms and their portfolio companies want to know what actions they can or should take, and what their peers are considering, to make the best decisions possible in response to the Covid-19 pandemic. Through talking with many different affected parties, service providers have streams of data and information that can help investors make informed decisions and minimize negative economic impacts on their investments. Mergers & Acquisitions examines offerings from EHE Health, Norgay Partners, Cepres, Valuation Research Corp. and Axial. “The stakes are high today,” says Greg Mansur, chief client officer at EHE Health, which provides a playbook on getting companies back to work safely. “We want to be part of the solution for our clients. We want to help them through this and help America get back to work.” Read our full coverage: 5 service providers guide dealmakers through the next phase of the pandemic. As transactions previously delayed due to the pandemic begin to pick up, acquirors and investors in the middle market should evaluate the target’s performance during the unprecedented disruption presented by the pandemic, and adjust expectations for the immediate and medium term. Supplemental due diligence is not only prudent -- it is likely to be required as a condition to the placement of any representations and warranties insurance. Essential considerations include whether the target has been able to innovate and whether the valuation agreed to in a letter of intent should be revisited. Buyers should also review any termination provisions to determine whether any breakup fee would be payable. See our full coverage: 11 factors for dealmakers to consider before buying a company during the pandemic. Many companies are unprepared to face the tremendous economic challenges brought on by the pandemic. For buyers, navigating this new world of distressed M&A may be the hardest obstacle to overcome in transactions with insolvent organizations. Read the full article: Coronavirus puts spotlight on distressed M&A. Digital technologies like artificial intelligence and advanced analytics can help organizations to accelerate their pace and expand their insights quickly—advantages that are especially crucial in times of rapid change. See the full story: How analytics can rebalance M&A in the wake of the coronavirus. What do you do when you’re a dealmaker under quarantine, and face-to-face meetings are out of the question? For Work from Home (WFH) strategies, Mergers & Acquisitions turns to eight prominent dealmakers from private equity firms, investment banks, lenders and law firms. “I miss the excitement of a great conference; wearing my nice clothes, early morning breakfasts, the one-on-ones, drinks with my women ‘tribe,’ and dinner at a steakhouse, even though I am a vegan,” says Amy Weisman, managing director, business development, Sterling Investment Partners. In some respects, it is easier to build relationships now, explains Nanette Heide, partner, co-chair, private equity group, Duane Morris. “Meeting folks over a video conference from their home is immediately humanizing.” M&A pros also point out that human factors play a role. "Emotional Quotient (EQ) is more important than ever during trying times,” says Jeremy Holland, managing partner, origination, The Riverside Co. “It’s critical to remember that the dealmaker on other side of the (now figurative) deal table is a person, too. They have good and bad days and presumably know many people in high-risk categories, potentially even themselves. Being extra thoughtful about each interaction is important." Read our full coverage: Dealmaking under quarantine: 8 private equity and M&A pros share strategies while social distancing. MORE FEATURED CONTENT Mergers & Acquisitions is recognizing nine dealmakers as the 2020 Rising Stars of Private Equity:
- David Farsai, Principal, Mainsail Partners, who is the first at the firm to rise from associate to principal
- Andrea McGuirt, Senior Associate, Palladium Equity Partners, who established a strategy for sourcing and executing opportunities in the current deal environment
- Molly Fitzpatrick, Vice President, Rallyday Partners, who led three investments and a divestment for the new PE firm
- Jenny Zhang, Vice President, Investments, Grain Management (pictured), who helps portfolio companies in the telecom infrastructure sector find organic growth opportunities
- Ross Stern, Principal, Summit Partners, who played a role in nearly $1.3 billion worth of healthcare company investments
- Arjun Mehta, Vice President, Bregal Sagemount, who has made eight platform investments and seven add-on acquisitions
- Miguel Tejeda, Vice President, Motive Partners, who stands out for his investment acumen and ability to distill complicated concepts and processes
- Clara Jackson, Principal, TA Associates, who has become a trusted supporter during the pandemic to help portfolio companies remain sustainable
- KJ McConnell, Principal, GTCR, who played a leading role in about 10 of the group’s last dozen deals