During the last decade, the machinery industry has experienced major dynamics and changes of its market environment. Advancing innovation, changing client demands, shifting sales markets, increasing factor costs, and stronger price competition are just few trends that put increasing challenges on machinery manufacturers and that emphasize the need for technological, operational, and strategic realignment. In this context, machinery manufacturers have identified mergers and acquisitions (M&A) as an adequate strategy to adapt to the changing market requirements and demands (RBSC 2008). This is reflected in increasing M&A volumes in the machinery industry. In 2007, the global transaction volume was estimated at USD 65bn, a sixteen-fold increase compared to the year 1990. During the same period, the number of transactions increased only by factor 2.5 reflecting a growing average deal size of transactions. The growing importance of M&A transactions also continued in recent years with a volume increase of 36 percent from 2006 to 2007.
KeywordsIndustry Concentration Machinery Industry Machinery Manufacturer Merging Firm Merger Decision
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