Lower Middle Market Weekly Outlook

Warren Buffett’s elephant gun is certainly getting some use. The latest deal came last week when Berkshire Hathaway announced the $3 billion acquisition of Duracell from Proctor & Gamble.

The deal is unique because Berkshire is acquiring the company with $4.7 billion worth of shares it already owns in P&G. The strategy will give Duracell a $1.8 billion cash infusion from P&G before the sale, and will save Berkshire the tax burden it would have incurred had it sold the P&G shares. Inversions were so last season.

In other news, PE firms might start buying one another, law firm mergers create conflicts for companies, and Halliburton is buying Baker Hughes for about $35 billion.

Transactions:

• LLR Partners invests $20 million in VersionOne
• Aquiline invests in Beach & Associates
• MediaMath acquires Rare Crowds
• Vista Equity Partners completes acquisition of TransFirst
• BV Investment Partners invests in TriCore
• Yukon Partners closes $400 million mezzanine fund
• NCI Building Systems to buy Centria for $245 million
• Generational Equity advises in EnSafe’s acquisition of EnviroSense 
• Triangle Capital Corporation invests $24.5 million in Orchid Underwriters Agency
• Intervale Capital acquires a majority stake in American Disposal Services
• Peak Rock Capital invests in Highline Produce Limited
• Kindred Healthcare acquires Centerre Healthcare
• Allergan nears a deal with Actavis to block a takeover by Valeant

Events:

• Monday: 2014 IBBA Fall Conference in Austin
• Tuesday: Family Office Involvement in Alternative Investments Roundtable in NYC
• Tuesday: Florida ACG Capital Connection in Tampa Bay
• Wednesday: Faegre Baker Daniels M&A Conference in Minneapolis

Opinions:

• Private equity vies for $10 billion in cement assets
• Culture and communication are critical to successful M&A
• Vista Equity takes unusual risks with private equity fund
• Will Halliburton-Baker Hughes deal spark more mergers?
• Goldman partners profit from no-fee private equity funds
• Investor community uses sneaky tactics, survey finds
• PE firms cautiously investing in lending businesses
• Family offices are seeking direct investments
• A private equity vintage to remember
• Chris Ventresca of JPMorgan on what’s ahead for M&A
• Tech mergers hotter than in dot-com era
• Direct lending gains traction as investor appetite increases
• PE firms see promise in Japan but still must convince LPs
• Ultra-rich increasing exposure to private equity
• Sovereign wealth fund acquisitions surge as confidence returns

This week in history… Sony buys CBS Records for $2 billion (1987).