Battery Power - July/August 2013 - (Page 9)

The Mergers & Acquisitions Environment Scott Mulcahy, Managing Director XMS Capital Partners Public Company Table Stakes: Growth Stock Prices High, Confidence High Acquisitions are optimistic undertakings. They involve risk. Business leaders feel more confidence when their companies are performing well. Strong operating performance is often coupled with high stock prices and attractive valuation metrics. It is no surprise that, in general, Mergers and Acquisition (M&A) activity tends to rise and fall with the economy and equity markets. One of the motivators for acquisitions is growth, particularly for public companies. A successful and growing public company with attractive margins, happy customers and hard-working employees can become a victim of its own success. Public company investors observe the accomplishments of successful companies and bid up their valuation metrics. They expect the companies will continue to grow at attractive levels of profitability. While astute investors will reward organic growth more highly than purely acquired growth, corporate CEOs, particularly in the current environment, are regularly using acquisitions to achieve growth targets as well as other strategic objectives. Scale and Distribution Benefits: Synergies for Battery Companies In addition to providing a source of growth, acquisitions can also create benefits for the combined companies in the form of cost savings and incremental revenue opportunities. These so-called synergies provide the greatest motivations for M&A activity. The battery power industry, in our observations at XMS Capital Partners, offers substantial synergy opportunities to acquirers. US M&A Deal Volume and GDP Source: Wall Street research and Bureau of Economic Analysis XMS Article Continued on Page 10 NEW 580 BATTERY TEST SYSTEM Advanced 8 Channel Battery Cycler  Each channel is an independent potentiostat/galvanostat  6 current ranges from 10 μA to 1 A OPTIONS  5 terminal measurement  HFR for internal resistance  Universal cell holder  Standard or custom cell cables  Instrument Control and Data APPLICATIONS  Control modes: current, voltage  Batteries  Supercapacitors Analysis Software Included www.scribner.com info@scribner.com www.BatteryPowerOnline.com +1-910-695-8884 July/August 2013 • Battery Power 9 http://www.scribner.com http://www.scribner.com http://www.BatteryPowerOnline.com

Table of Contents for the Digital Edition of Battery Power - July/August 2013

From Processor to Power Management: The Copernican Moment for Portable Devices
The Mergers & Acquisitions Environment
ZigBee Resource Guide
Battery Take-Back Legislation: EU Speciality or Worldwide Principle of Waste Management?
Battery Pack/Assembly Manufacturer
Primary Battery Manufacturer
Secondary Battery Manufacturer
Alkaline
Lead-Acid
Lithium
Lithium-Ion
Lithium Iron Phosphate
Lithium Polymer
Manganese
Mercury
Ni-CD
Ni-MH
Silver
Thermal
Zinc
Aerospace/Aviation
Automotive
Consumer Electronics/Tools
Electric Vehicles
Industrial/Utility
Marine
Medical
Military
Renewable Energy Systems
Standby/Telecom/UPS
Accessories
Battery Assembly Equipment
Breakers
Cables/Harnesses
Capacitors
Chargers
Coatings
Components
Connectors
Consulting Services
Converters & Inverters
Dry Rooms
Electrolytes
Enclosures
Forming Systems
Holders
ICs & Semiconductors
Manufacturing Systems
Materials
Monitoring Systems
Powders
Power Supplies
Racks/Cabinets
Raw Materials
Recycling
Safety Systems & Equipment
Standby Power/UPS Systems
Testing Services
Testing Systems & Equipment
Watering Systems

Battery Power - July/August 2013