Hostile takeover decrease over the decades

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  • #36257
    Jerome Baumgartner
    Participant

    I was quite surprised to discover this decrease since the nineties and was wondering about the reasons:

    1) Is it because being acquired is now seen a financial success for a lot of technological companies ?
    2) Is it because the ownership structure profile changed over the years with consequently BoD being more open to this kind of situation ?

    Any other explanations ?

    Jerome

    #38858
    Hanen Dada
    Participant

    Few other reasons could be, the challenges during the integration process when its a hostile takeover, and the industries move toward consolidations especially as a result of the pandemic.

    #38863
    Meshal Alshammari
    Participant

    I was wondering the same thing, I believe that this is due to the nature of the deal and the resistance and clash that takes place. nowadays, companies focus more and more on cultural fitness due to its critical role in the success of the post-merger integration. with hostile takeovers, having such synergy is rare especially that one of the companies forced into the merger.

    #38883
    Ahmed Zainalabedin
    Participant

    I believe hostile takeovers were common years ago as companies were trying to acquire other companies for a quick profit. Currently, companies are thinking more strategically and with more due diligence, probability of success could be more challenging after a hostile takeover.

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