Merger Mania

Definition of 'Merger Mania'


A period of time with significant merger and acquisition activity in the corporate world. While merger mania can refer to merger and acquisition activity in general, it often refers to increased merger and acquisition activity within a certain industry, such as with the airline or telephone company industries.

Investopedia explains 'Merger Mania'


Mergers and acquisitions are corporate strategies that include the buying, selling and combining different companies. Companies seeking increased market share may aggressively merge with or acquire other companies. When mergers and acquisitions occur within a short period of time, the resulting business transactions can be referred to as merger mania.

Ivan Boesky, famous for the insider trading scandal that rocked Wall Street, authored a book entitled "Merger Mania: Arbitrage: Wall Street's Best Kept Money-Making Secret", that was published in 1985.


Filed Under: ,

comments powered by Disqus
Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option is purchased and the lower premium option is sold - both at the same time. The higher the debit spread, the greater the initial cash outflow the investor will incur on the transaction.
  2. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious debt when government leaders use borrowed funds in ways that don't benefit or even oppress citizens. Some legal scholars argue that successor governments should not be held accountable for odious debt incurred by earlier regimes, but there is no consensus on how odious debt should actually be treated.
  3. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the acquiring company will make an offer for the outstanding shares.
  4. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by additional investment would not warrant the expense. A harvest strategy is employed when a line of business is considered to be a cash cow, meaning that the brand is mature and is unlikely to grow if more investment is added.
  5. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will be executed at a specified price (or better) after a given stop price has been reached. Once the stop price is reached, the stop-limit order becomes a limit order to buy (or sell) at the limit price or better.
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The principle states that, for many phenomena, 20% of invested input is responsible for 80% of the results obtained. Put another way, 80% of consequences stem from 20% of the causes.
Trading Center