Today's wave of mergers is cresting peaks reached only at the turn of the century, at the height of the dotcom bubble. The value of European companies acquired in the first three months of this year was almost 130% greater than in the same period a year ago. Even in the United States, where dealmakers have for longer been exploiting cheap capital, the value of deals was up on the same (very high) levels of a year earlier. Is this boom, like the dotcom one before it, bound to turn to bust? The failure of some of the biggest deals in the past to deliver their promised rewards has underpinned the popular idea that M & A is a mug's game. Plenty of research has shown that most deals fail to create value for the acquirer's shareholders. However, today a growing body of evidence suggests that the continuing appetite for M & A can make sense. Not every deal will come off, to be sure; but it is easier to recognise those that stand a decent chance of success.
展开▼
