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BrackenMarch 24 2014

M&A – the missing piece of the regulatory puzzle

The regulation of the global financial sector should be extended to include intensive monitoring of merger and acquisition deals, which are a key source of instability.
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The issue of regulation may appear quite irksome and even daunting amid the tightening regime of the new regulatory paradigm. However, there is a regulation-free area that links the existing regulated environments. This regulatory gap may wipe out corporate value, destroy industry dynamics and destabilise markets. The area in question is merger and acquisition (M&A) deals in the banking industry.

Indeed, strategising, scheduling and maximising M&A value is a troublesome area for many businesses and deal-makers. Despite deep scrutiny of the deals and the focus on change and integration management, M&As are frequently the most damaging corporate reorganisations. More often than many might think, the hidden menace of an M&A has an implicit ripple effect – for the industry, market or economy at large – a process that under certain circumstances may run out of control and thwart the best efforts of all parties.

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