Alongside China’s booming economy and the country’s appetite for steel, concrete, copper and other construction materials, the last decade has demonstrated that not only can China consume materials, but its corporations are also capable of gobbling up companies around the world.
Earnings from merger and acquisitions and debt and equity capital markets have dropped to an 8-year low, falling to levels not seen since the collapse of Lehman Brothers.
Banks generated just $50.1 billion in fees in the year to date, 16 percent lower than the first nine months in 2011.
According to data from Thomson Reuters, the second quarter of 2012 was also the slowest quarter for investment banking since the first quarter of 2009, while European income for the first nine months fell to their lowest levels since 2002.
Trend essentially refers to the observed long-term movement in a time series data. Trend estimates are seasonally adjusted through an averaging process. Merger and acquisition trends provide an idea about the market movements.
Merger and acquisition trends are seen to affect an economy’s product market, money market, and labor market. Global markets are also considerably influenced by the merger and acquisition trends.
In this article we would elucidate in brief, some of the important terms that are used to explain the concepts of merger and acquisition.
When a company acquires another and sells it in parts expecting that the funds generated would match the costs pf acquisition, it is known as asset stripping.
The company that makes a hostile takeover is known as the Black Knight.
The US mergers and acquisitions have been going on since 1897. The initial development of the mergers and acquisitions in the US can be credited to the development of railroads throughout the country. With the development of the railroads there were a number of horizontal mergers in the US that took advantage of the relaxed economic atmosphere in the US.
The methods of valuation related to mergers and acquisitions can be broadly categorized into three types, namely market based method, income based method, as well as asset based method. All these methods carry a significant degree of importance in the context of mergers and acquisitions. There are numerous elements, which ascertain whether a particular firm should be acquired or not.
There are several causes of mergers and acquisitions in the global pharmaceutical industry. Among them are the absence of proper research and development facilities, gradual expiry of patents and competition within specific pharmaceutical genres. The high profile product recalls have also played a major role in the continuing mergers and acquisitions in the industry.
