Mergers and Acquisitions: Do They Create or Destroy Value?

Mergers and acquisitions (M&A) are perhaps the most important decisions that a company ever faces, yet very many deals destroy substantial value. This talk will discuss the correct and incorrect motives for M&A, using both examples and large-scale evidence. It will discuss the conflicts of interest that may lead investment banks to persuade clients to do value-destroying deals, and ways to motivate these conflicts. It will also critically analyse policy proposals to reform M&A, ...