MERGER AND ACQUISITION ACTIVITES IN THE UNITED STATES
Course:
Master of Business Administration in Banking and Finance
Module code and title:
ASB-4437 Merger and Acquisition
Module Tutor:
Mr. David Goh
Student Name:
Nguyen Thuy Lien- G1868358Q
Nguyen Tran Viet- G1868661P
Dang Thanh Hang- G1874508P
Due date:
18 April 2019
TABLE OF CONTENTS
1. INTRODUCTION 2
2. COUNTRY PROFILE 3
4. HISTORICAL WAVES OF M&A 3
4.1. The first wave (1897-1904) 3
4.2. Second wave (1916– 1929) 4
4.3. Third wave (1965–1969) 4
4.4. Fourth wave (1984 – 1989) 4
4.5. Fifth wave (1992 – 2000) 4
4.6. Sixth wave (2001 – 2008) 4
4.7. Seventh wave (2011-onwards) 4
5. CURRENT TRENDS OF M&A IN THE UNITED STATES 4
5.1. Characteristic of M&A in the United States 4
5.2. Deal motives 6
5.3. Emerging trend 7
7. FAILURES OF M&A ACTIVITIES 9
7.1. Cultural differences 9
7.2. Merger and Antitrust Act 9
ABBREVIATION
GDP: Gross Domestic Product
US: United States
M&A: Mergers and Acquisitions
LIST OF FIGURES AND TABLES
Figure 1: Number of Transaction of U.S from 2015-2018
Figure 2: Global top 5 Investors and destinations by value (2017)
Table 1: Organic/BFY private equity interst in 2018
EXECUTIVE SUMMARY
1. INTRODUCTION
Mergers and acquisitions activity is known to be cyclical and come in waves, which are driven by main factors such as economic, regulatory and technological changes. There were major merger waves taking place in the US economy in its very early eras. The US economy saw the most intense M&A wave in the 1990s with many megamerger deals, which then became international. Throughout the US history of M&A, there were formations of large firms as well as disappearances of many firms, not all M&A deals were considered successes but failures caused by repeated mistakes.
To understand the current development and get insights of future trends of mergers and acquisitions, a team including Hang, Lien and Viet is formed and has prepared report to examine M&A activities in the US, analyzing both successful and failed deals to identify the pattern of failed mergers and acquisitions. The content is contributed equally by each member; in which Hang as the coordinator responsible for introduction, country profile and historical waves of M&A; Lien is in charge of the current trends and failures of M&A activities and the conclusion; Viet takes care of the rest.
2. US F&B INDUSTRY PROFILE
The Food and Beverage industry is an important part of the US economy. In 2019, The total revenue in the Food and Beverage sector counts to $18.374 billion US dollars. By 2023, the annual growth rate of total revenue is anticipated to be 11%, which will create $27.872 billion of market volume. Comment by Admin: https://www.ced.org/pdf/Economic_Contribution_of_the_Food_and_Beverage_Industry.pdf
The US Food and Beverage industry has nearly 27,000 organizations and involves almost 1.5 million employees. The industry has become more stable with regard to ( use concise words ) employment and income, compared to ot...
