Are Mergers Boogeymen of Business? No, But They’re Not Saviors, Either

Financial mergers are an immensely polarizing subject to discuss.

Some people love them, others hate them. They are simultaneously heralded as impressive accomplishments in business and scorned as threats to the free market. The truth is usually somewhere in the middle.

But regardless of what people think of mergers, one thing is for certain: more are coming in 2020.

Over 10 years removed from America’s devastating financial crisis, the United States’ business sector has come roaring back and is projected to remain strong through the course of the new year. With it, the market for mergers and acquisitions is likewise on the upswing.

Driven by low interest rates and a favorable economic environment, the M&A market is expected to retain its forward momentum throughout the upcoming months. But with many potential mergers on the horizon, the question becomes: how should U.S. regulators proceed?

The answer, as with many things in the finance realm, is complicated. But it’s important to consider that there is no one-size-fits-all solution. Mergers are complex financial arrangements and are neither wholly good nor bad.

As I mentioned in an August 16, 2019, article, “[mergers are] generally good for the…