Merger mania
Encyclopedia
The term "merger mania" is used, as in financial and law journals, to describe a period of high activity in corporate mergers and acquisitions
(M&A),
with some merged companies then merging yet again into other companies within a few years. The term has been used for more than 37 years.
The term merger mania is often used to describe the business activities of the 1990s, where many companies (or corporation
s), formerly separate for decades, were frequently merged, then some re-merged into other companies, within a few years, with the resulting merged companies sometimes declaring bankruptcy
. The mergers were facilitated by changes in corporate law
which no longer separated various types of businesses previously limited from interlocking directorate
s and anti-trust concerns.
Several companies founded in the early 20th century had ceased to exist by the end of the 1990s, due to mergers.
Mergers and acquisitions
Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or...
(M&A),
with some merged companies then merging yet again into other companies within a few years. The term has been used for more than 37 years.
The term merger mania is often used to describe the business activities of the 1990s, where many companies (or corporation
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
s), formerly separate for decades, were frequently merged, then some re-merged into other companies, within a few years, with the resulting merged companies sometimes declaring bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
. The mergers were facilitated by changes in corporate law
Corporate law
Corporate law is the study of how shareholders, directors, employees, creditors, and other stakeholders such as consumers, the community and the environment interact with one another. Corporate law is a part of a broader companies law...
which no longer separated various types of businesses previously limited from interlocking directorate
Interlocking directorate
Interlocking directorate refers to the practice of members of a corporate board of directors serving on the boards of multiple corporations. A person that sits on multiple boards is known as a multiple director. A direct interlock occurs when two firms share a director or when an executive of one...
s and anti-trust concerns.
Several companies founded in the early 20th century had ceased to exist by the end of the 1990s, due to mergers.
External links
- International Financial Law Review, webpage: http://www.iflr.com.
- "ABC News: Airline Merger Mania: Bigger Not Always Better", John Nance, ABC NewsABC NewsABC News is the news gathering and broadcasting division of American broadcast television network ABC, a subsidiary of The Walt Disney Company...
Internet Ventures, November 2006, webpage: ABCNews-Business-2114.