Doing the M&A tango

The August reporting season always gives rise to mergers and acquisitions activity – some successful, some not so much.

So, Squizzy was not at all surprised to hear Equity Trustees might be close to closing the deal on acquiring Australian Equity Trustees (AET) from Insignia Financial even though Insignia was being cautious in the way it dealt the media “speculation” around the transaction.

For what it is worth, Squizzy will also not be surprised to hear that Centrepoint Alliance and Diverger are again considering mergers and acquisitions, just as he would not be surprised to hear that BT Panorama will eventually find a home somewhere around Sydney’s Circular Quay.

The point is, of course, that mergers and acquisitions are a dance and sometimes a dance partner can be clumsy and stand on your toes which can mean everything is off until the band strikes up a different tune.

Squizzy can also think of another, less significant transaction involving one of his old stomping grounds where the dancing has stopped, the lifeboats have left and the band is playing Nearer My God to Thee.