Riding the wave
Corporate dealmakers should heed the lessons of past merger waves
WHY mergers and acquisitions (M&A) come in waves is not fully understood. Companies’ fortunes are affected by the economy’s ebb and flow, but this does not seem enough to explain why merger activity crests and breaks so dramatically. Yet crest and break it does. In America there have been at least five merger waves, in which the number of deals swelled, peaked then tumbled. The first, in the 1920s, ended with the onset of the Great Depression. It was less obvious why the following ones—in the 1960s and then in each decade since 1980—were so strong. Now, say some experts, a powerful sixth wave is forming.
This article appeared in the Business section of the print edition under the headline “Riding the wave”
From the October 5th 2013 edition
Discover stories from this section and more in the list of contents
Explore the editionDiscover more
Could seaweed replace plastic packaging?
Companies are experimenting with new ways to reduce plastic waste
Has Sequoia Capital outgrown its business model?
Venture capital’s hardiest perennial gets back to its roots
On stupid rules and quick wins
Why every boss can benefit from asking employees what most infuriates them
TikTok wants Western consumers to shop like the Chinese
It still has some convincing to do
Will the trouble ever end for Volkswagen and its rivals?
From strikes to Trump tariffs, calamities abound
After Northvolt’s failure, who will make Europe’s EV batteries?
The continent looks ever more reliant on Asian producers