Abstract
This chapter provides an understanding of numerous players who make mergers and acquisitions (M&As) happen. It also sheds light on their roles and responsibilities. The first category of key players includes the firms and individuals that provide specialized services during mergers and acquisitions. They include investment banks, lawyers, accountants, proxy solicitors, and public relations personnel. Institutional investors and lenders are organizations that pool large sums of money to invest in or lend to companies, and are an important source of M&A financing. Commercial banks, one type of institutional investor, have always played an important role in providing both short- and long-term financing, often backed by the assets of the target firm. Over time, however, other types of institutional investors have become increasingly important as sources of financing for corporate takeovers. Furthermore, institutional activism has become an important factor in mergers and acquisitions. Institutions often play the role of activist investors to affect the policies of companies in which they invest and especially to discipline corporate management. Finally, regulations that affect merger and acquisition activity exist at all levels of government. Some are general—they affect all firms, and involve federal security, antitrust, environmental, racketeering, and employee benefits laws. Others are industry specific, such as public utilities, insurance, banking, broadcasting, telecommunications, defense contracting, and transportation.
Published Version
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