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M&A today: Great challenges, but great opportunities
Author(s) -
Schmid Alexandra S.,
Sánchez Carol M.,
Goldberg Stephen R.
Publication year - 2011
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.21731
Subject(s) - diversification (marketing strategy) , recession , great recession , business , equity (law) , volatility (finance) , global recession , mergers and acquisitions , finance , economics , marketing , political science , labour economics , macroeconomics , law
The volatility in today's financial markets creates great challenges. But it also creates great opportunities for mergers and acquisitions (M&As). In uncertain times, there is a need to play it safe. But for some, it is also the ideal time to seize opportunities to make great deals. As companies find distinctive strategies to navigate in these turbulent times, many continue to use a twofold strategy: cut costs and stimulate growth through diversification, which includes M&Amp;As. So despite the recession, it looks like global M&A activity increased in 2010 and 2011. The authors take a close look at global M&A activity in 2010 and the first half of 2011 (the latest period for which they have solid data). They also examine US M&A activity with regard to private equity. And they discuss key best practices to successfully manage M&A integration. © 2012 Wiley Periodicals, Inc.