The risks and advantages of M&A are extensive, but they are usually associated with shareholder value destruction caused by overpayments for target firms or organizational inefficiencies due to suboptimal synergies and overall integration failures. ![]() Firms may also face serious ramifications from engaging in business combinations, especially when a deal’s costs outweigh the benefits. For example, the potential benefits of successful M&As include economies of scale from increased market share and diversification of products and market risks. This boom in takeover activities has produced a voluminous body of literature, and researchers continue to examine various aspects of M&As, such as the causes and effects of these deals. The M&A market’s total transaction volume reached USD 3.7 trillion in 2017, making it the fifth most active year on record 1. ![]() The market for corporate control has steadily expanded over the last century, witnessing rapid growth in recent decades. Mergers and acquisitions (M&As) are among the most important and prevalent corporate decisions regarding growth and development.
0 Comments
Leave a Reply. |