Merger Craze

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INTRODUCTION:

            When reviewing the implementation of different business practices popular among firms in the United States, one would see that mergers and acquisitions take a fair share of attention from US law making body. One would assume that companies might steer clear of such processes mired in legal complexities, but ironically, most companies think that the advantage outweighs the difficulties and other negative implications. In fact, the recent years showed that the “merger wave” in America keeps growing. The increase in merger and acquisition transactions was both in number and financial size. As New York Times has pointed out, the corporate environment of America is being reshaped by merger activities in a way never seen since the wave of industrial takeovers in auto and steel firms occurred at the start of the century. The “merger craze” is not only shown by the statistics of recent transactions, it is also evident from the increasing effort of the US government in the enforcement of merger related laws. Throughout the years, the Anti-trust law went through several revisions. How does America really view the merger wave? This is a controversial concept, and as such, there is no uniform opinion, but instead, a diversity of perspectives. In this paper, we will discuss the impact of mergers and acquisition to the workforce, the management, the society, and the government. In addition to that, the way that the mentioned sectors react to the implication would give us an idea, a picture of the stand that the US culture takes with respect to the issue of mergers, acquisition, and a related topic, “take-overs”.

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