ninth wave of Mergers and Acquisitions, let us look at earlier waves and drivers for those MThe first wave of mergers and acquisitions occurred in the period between the 1890s and early 1900s when.
U.S. companies tried to build monopolies in their respective industries, an extreme form of horizontal integration (when a company acquires another that produces the same type of product, i.e., a competitor that is at the same stage of production).With a stricter antitrust environment, the creation of monopolies was hindered by the U.S. government, and what was seen during the second wave of mergers was the creation of oligopolies and vertical integration between different companies (when a merger occurs between supplier and customer).The third wave also known as conglomerate merger period, was seen in post-world war II period was characterised by a trend towards diversifications.
This wave was characterised by economic environment in the developed countries and the global business environment.The fourth wave of M was mega acquisitions and most of them were hostile takeovers and such offers are usually fully or partially financed by debt and /or private equity funds.
The cause of this was mainly a combo of competitive and social environment at that time and thus most of them were domestic transactions and were highly leveraged.The fifth wave of M during 1992 to 2000 was driven by globalisation, the stock market boom and high level of market deregulation.
Thus it was caused mainly by a combination of global economic environment, regulatory changes and emerging technological changes in logistics and supply chain.The sixth wave after 2001 recession and Y2K problem was driven by technology innovations and cheap funds thanks to the stimulus from the US Federal Reserve.
M transactions multiplied with high liquidity buy also generated dissertations, especially in the prices of Target Company and leading to failures and destruction of values for most of M transactions.
