Billion-Dollar Mergers Can Create Substantial Shareholder Value, Says Former Quest Integrity CFO Todd Katz

todd katzIt’s a sign of the times, and it would behoove investors to pay attention. According to a November 7, 2017 CNBC article, Wall Street and the White House are seemingly on board with blessing massive mergers and acquisitions that could see billion-dollar entities join forces. What’s driving these moves that are in some cases “unsolicited” as CNBC puts it? “…Irreversible shifts in consumer behavior and fierce competition from technology-savvy competitors,” the article reads, adding that the likes of Walt Disney Co., 20th Century Fox, CVS and the wireless and broadband company Broadcom are getting in on the action.  According to Todd Katz, previously CFO of Quest Integrity and a former Director in mergers and acquisitions at Merrill Lynch, large-scale M&A can offer substantial financial benefits in the form of enhanced revenue growth and cost savings.

According to the CNBC article, examples of high-stakes deals include the $103 billion bid from Broadcom to take over San Diego-based Qualcomm, another leading telecommunications company. Wall Street appears to be looking forward to such major shifts. According to the article, Goldman Sachs’ CEO said in a recent conference call that bankers were “seeing a pickup in client dialogue” regarding “deal making.”

What’s more, the possibility of major tax reform in the U.S. is spurring large companies to “consider strategic acquisitions and sales right now,” the Goldman Sachs CEO said.  Speaking of tax reform being floated by the White House, the article notes that the current administration’s pick for head of the Department of Justice’s anti-trust division was approved in September 2017. That’s good news for companies like AT&T and Qualcomm.  The former is eyeing an $85 billion deal to take over Time Warner, according to the article.

Former Quest Integrity CFO Todd Katz is no stranger to the inner workings of these deals.  While with the international pipeline inspection company for eight years, Todd Katz oversaw its 2010 sale for $45 million. Add that figure to the $75 million that Quest Integrity earned in 2016, the year of Todd Katz’s departure, and it’s clear that this chief financial officer knows how to make smart business moves. As a previous Director in mergers and acquisitions for Merrill Lynch, Katz worked alongside bankers, attorneys and clients as his operation earned some $34 million in fees for the firm.

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