MODERN WAVES OF MERGERS AND ACQUISITIONS

Abstract

The article examines the evolving dynamics of the global mergers and acquisitions (M&A) market, tracing the historical development and distinctive features of each merger wave. A concise overview of the first five M&A waves is provided, highlighting their key characteristics, dominant types of transactions, and their geographical scope. It also provides a detailed analysis of the sixth and the seventh waves, with particular emphasis on their defining characteristics. It is established that both these waves have a global nature. Additionally, it has been found that the main features of the sixth wave of mergers include the proactive role of private investors, the significant involvement of private equity, and the widespread use of leveraged buyouts.

The impact of the Sarbanes-Oxley Act on the course of the sixth wave of M&A is examined. It is established that its consequences included increased procedural complexity and longer timeframes for concluding merger transactions, growing demand for private companies, an increase in the number of acquisitions of small firms, intensified consolidation in the audit and consulting services markets, and heightened activity of private investment funds.

The specifics of the seventh wave of concentration are exposed, including the active participation of BRICS countries, growing demand for technologies and digital assets, the conclusion of transactions aimed at achieving ecological and social goals, and the active involvement of SPACs in the deal financing.

The Ukrainian M&A market is analyzed. It was found that the specifics of its functioning are shaped by historical (e.g., Russian-Ukrainian war), economic (e.g., privatization, active role of government), and political (e.g., political instability, corruption) factors in the development of Ukraine. The sectoral structure of the Ukrainian market is investigated. A comparative analysis of the global and Ukrainian M&A markets is conducted, and a range of factors reducing the attractiveness of the domestic market for foreign investors is identified.