Mergers and Acquisitions [antikvár]

PREFACE From 1992 to 2000, the pace of merger activity rose to unprecedented levels. An environment of sustained economic growth and rising stock prices facilitated transactions. Toward the end of 2000, the economic climate shifted and merger activity in the fourth quarter declined. The economy showed only small growth during the first quarter of 2001. Excess capacity in a number of , industries had developed, and sales and profit disappointments began to widen. The business cycle had returned. Valuations in ^ j Internet companies and other high-tech industries have been i|!V, sharply revised downward. The pooling method of accounting ly^i , for mergers is scheduled to be abolished. New challenges face ¦] . business firms large and small. ' ( In this new economic environment, the nature of merger ' l', activity will change and the dollar volume may decline. But the ; i economic role of mergers and related activities will expand. The i, > term "mergers and acquisitions (MAs)" encompasses a widen- j ing range of activities, including joint ventures, licensing, spin- , offs, equity carveouts, tracking stocks, restructuring, alliances, ! and other corporate interactions such as network relationships. H ^^. The fundamental role of MA activities is to enable firms ' : Iti' share, improve profitability, and enhance enterprise values. to adjust more effectively to new challenges and opportunities. If done efficiently, MAs can increase revenues and market The data show that mergers overall have increased market values. With excess capacity in a number of industries, mergers to facilitate the consolidation and reduction of capacity will be required. The new technologies will continue to impact industries and create opportunities for business firms of all sizes. Thei-e will continue to be opportunities for small firms to come into being and to establish substantial valuations. The venture capital industry and financial buyers will continue to represent important activities. Earlier studies reported that two-thirds of mergers were failures in the sense that they did not earn the required cost of capital for the product-market activity involved. Later studies of strategic mergers of the 1990s suggest that the success rate