Meet M&A — The enabler of Oligopoly Capitalism

Volume & Value of M&A Deals 1995–2015
M&A Deals 2015–2022
  1. First Wave — 1890s- industrial revolution. Consolidation for productivity & scale gains. General Electric, American Tobacco, and Standard Oil emerged in this era. This led to the establishment of the first true monopolies in certain sectors. Regulation (Sherman Act, Clayton Act) killed the first wave.
  2. Second Wave — 1916–1929. Oligopolistic rather than outright monopoly. More vertical integration as opposed to horizontal ones. The wave was halted by the Great Depression.
  3. Third Wave — 1960 to 1970. This was characterized by conglomerate types of mergers, where companies acquired others outside of their primary economic activity. This is the Age of Conglomerates. Regulation (Hart-Scott Act) halted the third wave.
  4. Fourth Wave — 1981–1989. Merger Mania. Remarkable size and quantity of M&A deals. Dominated by hostile takeovers. This wave created BigPharma, Big Airlines, and extended Big Banks.
  5. Fifth Wave — 1993–2000. Mergers went global. Markets opened up globally.

Should we blame Investment Bankers? Hell No?

Investment bankers are hated by many outside of Investment Banking. They are hated for many reasons, but only in rare cases are they hated for their economic role. They are hated for the huge salaries they earn, the toxic work culture they propagate, and just the general “I-am-better-than-you” attitude reminisce of spoilt rich kids that they exude.

Capture the Enabler

The transition from Late-Stage Capitalism to Post Scarcity Communism will require the skills of M&A teams in crafting globally owned corporations. In the guided transition that I envision, we will have to tolerate super-sized global firms as a reality due to the economies of scale needed to usher in abundance in certain areas of life.

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Ryan Gosha

Ryan Gosha

Financial Analyst, Cloud Accountant, Citizen Data Scientist, FPL Boss