5. Mergers and Acquisitions Figure 28.1 Percentage of Public Companies Taken Over Each Quarter, 1926–2005 History Mergers seem to occur in waves
6. Mergers and Acquisitions Adapted from Martinova and Renneboog 2008 Period Events coinciding with beginning of wave Events coinciding with end of wave Wave 1 1890’s- 1903 Economic expansion; industrialisation processes; introduction of new state legislations on incorporations; development of trading on NYSE; radical changes in technology Stock market crash; economic stagnation; beginning of First World War Wave 2 1910’s – 1929 Economic recovery after the market crash and the First World War; strengthen enforcement of antimonopoly law Stock market crash; beginning of Great Depression Wave 3 1950’s – 1973 Economic recovery after the Second World War; tightening of anti-trust regime in 1950 Stock market crash; oil crisis; economic slowdown Wave 4 1981 – 1989 Economic recovery after recession; changes in anti-trust policy; deregulation of fin. services sector; new financial instruments and markets (e.g. junk bonds); technological progress in electronics Stock market crash Wave 5 1993 – 2001 Economic and financial markets boom; globalization processes; technological innovation, deregulation and privatisation Stock market crash; 9/11 terrorist attack New wave ? 2003 - ? Economic recovery after the downturn in 2000–2001 n.a.