Market Share Game & The Bottom Line

Businesses have been pursuing mergers and acquisitions more vigorously than at any time since the tech boom of the late 1990's; $2.7 trillion worth of deals were reached worldwide last year, 38.4 percent more than in 2004, according to Thomson Financial. The research firm expects another big year,….

… “[Mergers are] more of a market share game as growth slows and the expansion grows longer in tooth. You buy a company that complements your core business, lay off all the people that perform redundant functions and it's a big improvement to the bottom line.”

Alec B. Young, strategist, Standard & Poor’s.

Conrad De Aenlle, “Mergers Rise and Analysts Take Notice,” New York Times, 1/21/06.