Theories of M&A occurrence

Duncan N. Angwin

Chapter 155 in Elgar Encyclopedia of Mergers and Acquisitions, 2026, pp 418-420 from Edward Elgar Publishing

Abstract: This chapter reviews theories explaining why M&A occurs, including merger waves driven by economic disturbances, efficiency motives, monopoly power and managerial self-interest. It explores valuation, synergy creation and empire-building as rationales, along with process theories addressing organisational dynamics. The chapter critiques existing theories for their limited explanatory power and highlights the multifaceted, context-dependent nature of M&A motivations, encouraging further theoretical exploration.

Keywords: Merger waves; Economic disturbance theory; Efficiency theory; Monopoly theory; Synergy theory; Valuation theory; Empire building theory; Process theory; Raider theory (search for similar items in EconPapers)
Date: 2026
ISBN: 9781800880856
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