The largest mergers and acquisitions ever recorded include deals such as the $71.3 billion acquisition of 21st Century Fox by Walt Disney Company in the year 2019. These deals are often described as success stories, however the reality is that many M&As result in disasters. From overpaying to strong cultural differences, the causes for failure are many and diverse. It’s crucial to learn from the mistakes of others. Our free guide offers insight into how companies can avoid a bad M&A deal.

M&A activity slowed during the second quarter of 2022 due to the uncertainty in macroeconomics and volatile capital markets. There are indications that the pace may increase in the near future for strategic transactions.

When companies merge, they utilize two primary methods which are mergers or acquisitions. A merger is the union of two companies into one entity. An acquisition is the purchase of a business, either through cash or through debt and then integrating it into your operations.

In a buyout, the buying company buys all assets and liabilities of its company of choice, leaving nothing other than cash, or perhaps debt. Blackstone’s takeover of Italian infrastructure company Atlantia for $28,6 billion and Brookfield’s purchase of Deutsche Funkturm tower business for $5 billion are two examples.

US private equity firms have taken advantage of the trend of buying European assets. Seven of the ten top deals of the year were involving US private equity firms, including Blackstone’s $28,6 billion purchase of Atlantia and Bristol-Myers Squibb’s $28,6b acquisition of Celgene Cancer Drug Company.