M&A PE

,
MBA, Columbia Business School

Procter & Gamble Korea

Goldman Sachs IBD (Investment Banking
Division) M&A
Bain & Company
2006 Bain & Company ()
2006-2011 Bain & Company Private
Equity M&A Group

M&A
M&A ,
, ,

, , ,
, , , ,
, , ,


SEO

20110929-The Bell Academy-M&A Market-Hand Out_v01 2

 M&A 3-4
M&A , PE
M&A (97-10)

30%

IT bubble/

*PE deal CAGR 98~07 (97 PE deal )

Note: , , ,
Source: AVCJ, Bain Analysis

-22%

SEO

20110929-The Bell Academy-M&A Market-Hand Out_v01 3

 Buy-Out

M&A (97-10)

30%

-22%

*Influential minority deals: deals with a deal stake between 20-50%

Note: Includes only Korean target and excluded several unrelated type of deal such as disposal of land, equipments and real estate property, and etc.
Source: AVCJ, Bain analysis
SEO 20110929-The Bell Academy-M&A Market-Hand Out_v01 4

 M&A
2008 M&A

(Avg. deal size)

$300M

234

225

223
204

200
159

161

155
139

170
155
142

103

100

90
66
52

'97 '98 '99'00 '01 '02 '03'04 '05'06'07 '08 '09 '10'11.1H

Source: AVCJ, Bain analysis

SEO

20110929-The Bell Academy-M&A Market-Hand Out_v01 5

PE Buy-Out 50%
PE (97-10)

*Influential minority deals: deals with a deal stake between 20-50%

Note: Includes only Korean target and excluded several unrelated type of deal such as disposal of land, equipments and real estate property, and etc.
Source: AVCJ, Bain analysis
SEO 20110929-The Bell Academy-M&A Market-Hand Out_v01 6

PE

PE deal

PE

(Avg. deal size)

$400M

302

300

200 194

189
167 164
152

159

144

130
115 116

108

100

80
46

'98 '99'00 '01'02 '03'04'05 '06'07 '08'09 '10'11.1H

Source: AVCJ, Bain analysis

SEO

20110929-The Bell Academy-M&A Market-Hand Out_v01 7

( ) , M&A,

( )

()

(Secondary)

2000 PE

PEF

, ,

, ,

(Distressed)

(Non-core)
-
(Cash-out)

Growth capital

SEO

20110929-The Bell Academy-M&A Market-Hand Out_v01 8

 M&A

Top 20 (97~10)

Phase I

&
Phase II

Phase III

Note: Top 20 , ,
SEO 20110929-The Bell Academy-M&A Market-Hand Out_v01 9
Source: AVCJ


2006 2008 SI
Top 20 M&A (97-10)
Top 20 deals (in $B)

100%

2.2

8.2

17.7

11.3

15.3

9.8

12.0

12.1

18.3

22.8

15.4

11.6

6.1

8.3

5.8

80

60

40
Other *
Gov't

20

PE
Foreign SI
Korean SI

'97

'98

'99

'00

'01

'02

'03

'04

'05

'06

'07

* ( & )
Note: Top 20 , , .
SEO
Source: AVCJ; Lit. Search; Bain Analysis

'08

'09

'10

'11.1H

20110929-The Bell Academy-M&A Market-Hand Out_v01 10

 Winners Curse

11 8 7002

The Chosun Ilbo (August 11, 2007)

SEO

20110929-The Bell Academy-M&A Market-Hand Out_v01 11

2009 M&A PEF

Top 20 M&A deals in 2009
Target

Deal Size
(M USD)

Deal
stake

Seller

Buyer

Category

1,800

100%

Anheuser-Busch InBev

Affinity & KKR

Non-core

Doosan Soju

398

100%

Doosan Corp

Lotte Group

Non-core

On media

365

55%

Owner

CJ O shopping

Non-core

TheFaceShop

362

90%

Affinity & Woon-Ho Jung

LG Household and Healthcare

Secondary

Gmarket

353

29%

InterPark

eBay

Non-core

Hana card

333

49%

Hana Financial Holdings

SK Telecom

Other

Yangpoong Mutual Savings Bank

323

86%

Yangpoong Mutual Savings Bank Tomato Mutual Savings Bank

Distressed

Doosan group deal*

308

49%

Doosan group

IMM PE & Mirae Asset MAPS

Distressed

Kumho Rent-A-Car

250

100%

Kumho Asiana Group

KT & MBK

Distressed

10 AK global

237

81%

ARD holdings

Distressed

11 Hyundai Corp.

235

50%

KDB,woori bank,creditors

12 Seoul Express Bus Terminal

232

39%

Kumho Asiana Group

13 Jinro

228

13%

Hite Brewery

14 Qrix Holdings

187

70%

Qrix Holdings

Hotel lotte
Hyundai Heavy Industries
consortium
Core Financial Advisors Group
NCUF (National Credit Union
Federation Korea)
TBroad Holdings

15 BC Card

156

31%

Hana Bank; SC First Bank

Vogo Investment

Non-core

16 Daesan Combined Cycle Power Plant

99

100%

Hyundai Heavy Industries

Meiya Power

Non-core

17 Novelis Korea

97

14%

Taihan Electric Wire

IMM PE

Distressed

18 Ssangyong

96

70%

MSPE

GS Holdings

Secondary

19 First Fire & Marine Insurance

89

25%

First Fire & Marine Insurance

Hanwha

Cash-out

20 Young Hwa Engineering

84

100%

IMM, I.H. Kim & I.S. Kim

MBK

Cash-out

Oriental Brewery

Post restrABCturing
Distressed
Distressed
Cash-out

Note: *IMM, 4 (Doosan DST, Samhwa Crown & Closure, SRS Korea, Korea Aerospace Industry)
SEO 20110929-The Bell Academy-M&A Market-Hand Out_v01 12
Source: AVCJ, Bain analysis

2010 M&A

Deal
Size
Target

Top 20 M&A deals in 2010

Deal

(M USD) stake

Seller

Buyer

Category

Korea Exchange Bank

4,100

51

Lone Star Japan Acquisitions, Ltd. (Japan)

Hana Financial Group Inc. (South

Korea)

Daewoo International

3,009

68

KAMCO

Posco

Post restructuring

Daewoo E&C

2,179

37

Kumho

KDB

Distressed

GS Retail - department store

and discount store operations

1,146

100

GS Retail (South Korea)

Lotte Shopping Co., Ltd. (South

Korea)

Non-core carve-out

Tong Yang Life Insurance Co.

798

47

Tong Yang Group

Vogo Investment

Distressed

Ssangyong Motor Co.

450

70

Ssangyong Motor Co. (South Korea)

Mahindra & Mahindra Ltd. (India)

Distressed

Prudential Asset Management/

Investment & Securities co.

425

100

Prudential Financial Inc. (United States)

Hanwha Securities Co., Ltd. (South

Distressed
Korea)

K-Power Co., Ltd.

324

35

BP plc. (United Kingdom)

SK Holdings Co., Ltd. (South Korea) Non-core carve-out

Medison Co., Ltd.

263

44

Consus Asset Management Co., Ltd. / Consus Partners

(South Korea)

Samsung Electronics Co., Ltd.

(South Korea)

Secondary(Investme
nt exit)

10 LG-Nortel Co. Ltd.

242

51

Nortel Inversora SA (Argentina)

Telefon AB LM Ericsson (Sweden)

Distressed

11 Buy The Way, Inc.

237

100

Unitas Capital Yuhan Hoesa (South Korea)

Lotte Group (South Korea)

12 KSNet

231

99

KSNet (South Korea)

Net1 U.E.P.S. Technology Inc.

(United States)

13 Ndoors, Inc.

183

80

14 Hanjin Newport Co Ltd

177

49

15 Celltrion Inc

173

10

16 Standard Diagnostics, Inc

166

62

17 Hi mart

151

100

18 Pureun2

102

85

19 Eyedentity Games Inc.

95

100

20 Delkor Corp.

90

90

Ndoors, Inc. (South Korea);Walden International Hong

Nexon Corp. (South Korea)
Kong Ltd. / Walden International China Ltd. (Hong Kong)
Undisclosed Investor(s) (South
Hanjin shipping
Korea)
Ion Investments BV(Singapore
Celltrion Inc
Temasek)
Inverness Medical Innovations Inc.
Standard Diagnostics, Inc (South Korea)
(United States)

Secondary
(Investment exit)

Secondary
(Investment exit)
Secondary
(Investment exit)
Mid-cap owner's
cash out
Distressed
Growth Capital
Mid-cap owner's
cash out

Eugene Group

IMM; H&Q

Distressed

Pureun2 (South Korea)

ORIX Corp. (Japan)

Non-core carve-out

Eyedentity Games Inc. (South Korea); LB Investment

(South Korea); Premier Partners, LLC (South Korea)

Shanda Games Ltd. (China (PRC))

Undisclosed Investor(s) (South Korea)

Johnson Controls Inc. (United

States)

Note: stake swap, open market trading, transaction

Source: AVCJ, Bain analysis

SEO

Mid-cap owner's
cash out
Secondary
(Investment exit)

20110929-The Bell Academy-M&A Market-Hand Out_v01 13

2011
M&A 70%
Deal
Size
Target

Top 20 M&A deals in 2011.1H

Deal

(M USD) stake

Seller

Buyer

Category

4,440

35

Hana Bank; Hyundai Securities; Kookmin Bank;

Korea Exchange Bank; Korea Finance Corporation;
NACF; Shinhan Bank; Woori Bank

Hyundai Mobis; Hyundai Motor;

Kia Motors

Post restructuring

2 Korea Digital Satellite Broadcasting

222

14

Affinity Equity Partners

KT Corp.

Investment exit

3 BC Card Co., Ltd.

209

34

Shinhan Bank; Woori Bank

KT Capital

Non-core carve-out

4 Samsung Medison Co., Ltd.

145

22

Korea Credit Guarantee Fund

Samsung Electronics

Post restructuring

5 Doosan Industrial Vehicle

111

49

Doosan Infracore Co., Ltd.

Standard Chartered PE

Non-core carve-out

6 Hyundai Logiem Co. Ltd.

90

33

Hyundai Logiem Co. Ltd.

Woori Blackstone PEF

Growth Capital

7 Ymir Entertainment Co. Ltd.

69

100

Ymir Entertainment Co. Ltd.

Webzen Inc.

Mid-cap owner's cash out

8 Techno Semichem Co. Ltd.

53

N/A

Techno Semichem Co. Ltd.

STIC Investments

Growth capital

9 KT Telecop Corp.

48

24

KT Telecop Corp.

KB Investment

Growth Capital

10 Seil Seres Co. Ltd.

47

100

Undisclosed Seller(s)

KSB AG (Germany)

Mid-cap owner's cash out

11 Daehan Paper Tech Co. Ltd.

44

100

Daehan Paper Tech Co. Ltd.

Hansol Paper Co Ltd

Mid-cap owner's cash out

12 Doosan Capital Co., Ltd.

44

29

Doosan Capital Co., Ltd.

Hana Daetoo IB - PE; IMM;

Mirae Asset PE

Growth Capital

13 Hana Micron Inc.

42

17

Hana Micron Inc.

H&Q Asia Pacific

Growth capital

14 Unison HiTech Co., Ltd.

40

100

Unison Co., Ltd. (South Korea)

Headland Capital Partners

Non-core carve-out

15 Nexolon Co., Ltd.

36

N/A

Nexolon Co., Ltd.

IBK Capital; Korea Finance Corp. Growth capital

16 Indilinx, Inc.

35

100

Indilinx, Inc. (South Korea)

OCZ Technology Group, Inc.

Mid-cap owner's cash out

17 Leenos Corp.

35

32

Wok-kyu Lee

KTB Securities

Mid-cap owner's cash out

18 Korea Rental Corp.

35

13

Korea Rental Corp. (South Korea)

Is Dongseo Co. Ltd.

Distressed

19 Chungbuk Soju Co., Ltd.

31

100

Chungbuk Soju Co., Ltd. (South Korea)

Lotte Chilsung Beverage

Mid-cap owner's cash out

20 KG Eco Services Korea

28

40

KG Eco Services Korea

Eugene Asset Management

Growth capital

1 Hyundai E&C
(SkyLife)

Note: Excluded stake swap among affiliates, open market trading, transaction for strategic partnership
SEO 20110929-The Bell Academy-M&A Market-Hand Out_v01 14
Source: AVCJ, Bain analysis

 (LP) PEF
PEF
PEF *
(08-10 3Q)
6T

LP PEF
** (08-10 3Q)
6T

5.2
4.1

4.0

10

2.8

2.9

2.0
09

09

08

08

2008

2009

2010

43%

70%

81%

'08

'09

'10

Note: *
** LP - , matching fund; 10 9 ; 08 ; ,
Source: , Lit search, Expert interview
SEO 20110929-The Bell Academy-M&A Market-Hand Out_v01 15

, PE capital overhang ,

M&A (97-10)
PE ()

PE ()

10 capital
overhang
7 *

PE
PEF

40

PEF

30

4.5

3.4
2.7

3
1.7

1.8

1.7

1.6

20

2.5

2.2
2

3.5

1.5

1.0

0.9

'97

'98

'99

'00

'01

'02

'03

'04

'05

'06

'07

'08

'09

'10

PEF deal

0.00

0.01

0.00

0.05

0.13

0.02

0.02

0.58

0.30

0.47

1.67

1.56

1.23

1.21

PEF deal

23

21

20

1
0

10
08~10 PEF
:
11

* LP 08-10 ( 75% ) dry powder capital overhang

Note: , , ,
Source: AVCJ, Bain Analysis
SEO 20110929-The Bell Academy-M&A Market-Hand Out_v01 16

,

Bain
( )
100%

80

37

Top 20* M&A

100%

80

60

60

40

40

20

0
/

20

Bain
65%

* M&A 20
Source: AVCJ, Bain analysis

2006

2007

2008

2009 ~2010 Q3

/
40%

40%

45%

50%

SEO

60%

20110929-The Bell Academy-M&A Market-Hand Out_v01 17

 IMF ?
Korean M&A market size trend by deal origin (97-10)

30%

Asia financial
crisis

IT bubble collapse/
Credit card crisis

-22%

Global recession

Note: Includes only Korean target and excluded several unrelated type of deal such as disposal of land, equipments and real estate property, and etc.
Source: AVCJ, Bain analysis
SEO 20110929-The Bell Academy-M&A Market-Hand Out_v01 18

 M&A
Korean M&A market size trend by deal type (97-10)

30%

-22%

*Influential minority deals: deals with a deal stake between 20-50%

Note: Includes only Korean target and excluded several unrelated type of deal such as disposal of land, equipments and real estate property, and etc.
Source: AVCJ
SEO 20110929-The Bell Academy-M&A Market-Hand Out_v01 19

 M&A PE Buyer

1 ( ) - ,
. PE
2 SI M&A , PE capital overhang, PE
M&A - 2011-2012 M&A

3

4 ,
Value-Up
5 Value-Up .
-
(- )
6

PE
PE
SEO

20110929-The Bell Academy-M&A Market-Hand Out_v01 20