Roy C Smith, Ingo Walter
ABSTRACT
This paper analyzes empirical evidence regarding mergers and acquisitions
in the global financial services industry. It examines the global deal-flow
during the eleven-year period 1985-95 and generates a global typology of
intra- and inter-sectoral M&A transactions among and between banks,
insurance companies and securities firms. From these data it identifies
financial services as one of the most active industries involved in the
global M&A deal-flow. It also identifies the area of greatest M&A
intensity within the world financial services industry. The paper then
assesses the motivations for financial services M&A transactions in
the context of changed regulatory and competitive factors and evolution
in management objectives emphasizing the pursuit of greater operating efficiencies,
enhanced economies of scale and scope and greater market power which executives
and boards of directors believe has led (or will lead) to increased shareholder
value and competitive performance.
Smith: (212) 998-80719
Walter: (212) 998-8-0707
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