Franchising & Licensing, 4th Edition

CHAPTER 16Special Issues in Mergers and Acquisitions

The wave of mergers and acquisitions (M&As) that occurred throughout the 1980s were primarily financially motivated, and in the rollups of the 1990s, acquirer’s stock was used as acquisition currency to consolidate fragmented industries (and in many cases the expected economics of scale did not come to pass). The more recent mergers and acquisitions in 2008 and 2009, however, were motivated primarily by strategic considerations. Synergies between the acquiror and acquiree of the two or more merging companies were expected to lead to efficiencies, competitive benefits, and improved operating margins, or private equity firms got much more strategic in the assembly of their portfolios and the ...