Category: aptean

May 7, 2019 Off

Bubble-driven boom in M&As hides steep costs long-term

By Jill T Frey

Driven by ultra-easy central bank policy, global merger and acquisition activity is exploding. The value of transactions in the first eight months of 2018 reached $3.3 trillion worldwide, a 39% increase from 2017, and the market can expect another record-setting year in 2019. What does this mean? The data suggests that optimism about the efficacy of M&As has never been higher. Businesses are increasingly looking to M&As as the way to grow.

Growth is good, but growth can also be cancerous. Financial and strategic calculus may suggest a perfect … Read the rest