Buyer Beware

Introduction

In today’s global economy, corporate mergers and acquisitions (M&As) have become a part of economic reality. Increasing competition from foreign corporations and a general downturn in economic conditions have caused many United States companies to look for innovative methods of establishing a competitive presence in international markets. Globalization opens many U.S. companies to a broader outlook of an interconnected and interdependent world, with free transfer of capital, goods, and services across national frontiers. The synergistic gains from M&As may result from more effective and efficient management, economies of scale, more profitable use of assets, exploitation of market power, and the use of complementary resources; yet, ...