Electronic Resource
The MerGer MysTery: Why spend ever More on MerGers When so Many fail?
The Merger Mystery: Why Spend Ever More on Mergers When So Many Fail? by Geoff Meeks and J. Gay Meeks examines the persistent growth of mergers and acquisitions despite extensive evidence that many transactions fail to generate the expected improvements in operating profits. Drawing on statistical research and case studies from numerous businesses, the book investigates the economic, financial, accounting, and organizational factors underlying unsuccessful mergers. It identifies several interconnected causes, including misaligned incentives among executives and advisers, information asymmetry, distorted financial engineering, accounting practices, moral hazard, and taxation and regulatory arrangements. The authors also examine how these factors can interact and reinforce one another, creating conditions in which inefficient mergers may continue to occur. The book concludes by considering possible remedies, including changes to executive and adviser contracts, tax policies, accounting practices, and regulatory frameworks. Overall, the work provides an interdisciplinary analysis of mergers and acquisitions and their implications for corporate performance, shareholders, and the wider economy.
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