The impact of catastrophic events of the black swan type on the mergers and acquisitions market illustrated by the banking sector

Abstract

The purpose of the publication is to identify the distinctive features of the behaviour of the merger and acquisition market in the banking sector during two catastrophic events that took place between2020 and 2023. The study includes a literature review, an analysis of previous studies on crises and their impact on the merger and acquisition market, specifically in the banking sector (desk research),as well as an analysis of selected case studies. The article poses the following research question: “Does the merger and acquisition market in the banking sector exhibit specific characteristics during andafter catastrophic events?” In order to answer this question, literature, existing research and statistical data on transactions from 2020–2022 are reviewed. Additionally, two case studies from the Europeanand US markets are analysed. The research provides an affirmative response to the research question, and the conclusions confirming the specificity of the merger and acquisition market in the bankingsector are presented in the article’s summary. The author also recommends further in-depth research on the specifics of the market for corporate control during and after catastrophic events going beyond qualitative analysis.