Mergers Acquisitions (MA) 1980s-1990s free essay sample

Aims, types (friendly vs. hostile), examples, financing, third-party, regulations, globalization, govt. intervention, impact on stocks. Following a growth through acquisition strategy is not a new way for companies to increase their market presence. While open competition is one way for companies to gain market share and increase profit, eliminating competition through acquisition is a time-honored method for achieving the same goal. During the 1980s, mergers and acquisitions were characterized by companies raiding otherwise profitable organizations, then selling off the newly acquired company for ready cash. The result was an increase in profits to the acquiring company, but, in many cases, companies were unduly closed down, eliminating jobs and contributions to the economy. This research examines the mergers and acquisitions market, including past actions, current proposals, defenses that companies can mount to avoid hostile acquisition, and considers