Merger and Acquisition Trends are important to study in order to judge the market movements of any particular economy.
Not only the markets of particular countries, but also the World Market gets influenced by the significant Mergers and Acquisitions.
So, one can easily understand how determining the Merger and Acquisition Trends are in the overall development growth of any economy.
In the years 2006 and 2007, the world experienced numerous mergers and acquisitions.
All over the world, in the developed and developing nations, record number of merger and acquisition deals took place.
Most of these merger and acquisitions actually led to decrease in number of public undertakings and increase in number of private enterprises. This happened as many public organizations all over the world, were either merged into or acquired by big private institutions.
The reason of this particular Merger and Acquisition Trend, was the emergence and rapid growth of Private Equity Funds. Moreover, the regulatory environment of the publicly owned companies and the urge to attain growth of short term earnings were also behind the specific trend of Mergers and Acquisitions.
Mergers and Acquisitions resulting into privatization of the public undertakings took place not only in Europe, but also in North America, China and even in country like Brazil. In Europe this type of Mergers and Acquisitions took place significantly, as the market for public-to-private investment was quite strong in Europe. In China this type of Mergers and Acquisitions were first approved in 2006.
According to experts this trend of going private through mergers and acquisitions will continue in the future. As the Private Equity Funds are facing the target of deploying the raised capital, acquisition og large public organizations are definitely in the pipeline.
Last Updated on : 29th July 2013