A corporate merger or acquisition can have a significant impact on a company's long-
term outlook and potential for growth. But while an acquisition can transform the acquiring
company literally overnight, there is a significant degree of risk involved. As opposed to the
target company in an acquisition or the company that is absorbed in a merger,
merging/acquisition activity clearly has longer-term effects on the acquiring company or the
dominating corporation. The effect of merging/acquisition transaction on the acquirer relies on
the deal size in relation to the size of the target firm. The risk to the acquirer increases with the
size of the potential target. A corporation might be able to survive a failed small-scale
acquisition, but a failed large-scale acquisition could seriously undermine its long-term survival.
About M&T Bank and People's United Bank merging, the combined company created a
$200 billion banking franchise serving communities in the Northeast and Mid-Atlantic from
Maine to Virginia and Washington, D.C. The acquisition accelerated M&T's growth trajectory
and strengthened the company's financial profile for continued success. I believe that this type of
merging/acquisition increases profits for a firm and is also beneficial to customers. M&T Bank .,
after recently completing its acquisition of Bridgeport-based People’s United Bank, said that it
recorded $647 million in third-quarter profits, compared to $495 million in the year-ago period.
Although there were reports that Shares of MTB lost more than 5% in pre-market market trading
on lower-than-expected quarterly performance some merger deals are key successes, such as
Gilead Sciences-Pharmasset in 2011, while others are notorious flops, e.g. AOL-Time Warner in
2000.
term outlook and potential for growth. But while an acquisition can transform the acquiring
company literally overnight, there is a significant degree of risk involved. As opposed to the
target company in an acquisition or the company that is absorbed in a merger,
merging/acquisition activity clearly has longer-term effects on the acquiring company or the
dominating corporation. The effect of merging/acquisition transaction on the acquirer relies on
the deal size in relation to the size of the target firm. The risk to the acquirer increases with the
size of the potential target. A corporation might be able to survive a failed small-scale
acquisition, but a failed large-scale acquisition could seriously undermine its long-term survival.
About M&T Bank and People's United Bank merging, the combined company created a
$200 billion banking franchise serving communities in the Northeast and Mid-Atlantic from
Maine to Virginia and Washington, D.C. The acquisition accelerated M&T's growth trajectory
and strengthened the company's financial profile for continued success. I believe that this type of
merging/acquisition increases profits for a firm and is also beneficial to customers. M&T Bank .,
after recently completing its acquisition of Bridgeport-based People’s United Bank, said that it
recorded $647 million in third-quarter profits, compared to $495 million in the year-ago period.
Although there were reports that Shares of MTB lost more than 5% in pre-market market trading
on lower-than-expected quarterly performance some merger deals are key successes, such as
Gilead Sciences-Pharmasset in 2011, while others are notorious flops, e.g. AOL-Time Warner in
2000.
