How emerging giants are rewriting the rules of M&A

Deskripsi

Cash isn't the only factor behind the M&A wave. My research indicates that emerging giants can also create value from takeovers more easily than corporations from developed countries. US and European companies, inhibited by slow-growing home markets, acquire rivals primarily to become bigger and thus create economies of scale. After every merger, executives try to identify synergies, fashion efficient processes, and reduce head count so that costs will fall. In a slow-growing market, lowering costs to enhance margins is the only way to boost profits. This storyline is easy to sell to investors; a CEO can describe a merger's benefits beforehand and demonstrate some of them soon afterward..Printed journal