Sarcouncil Journal of Multidisciplinary

Abstract: Mergers and acquisitions play a transformative role in the U.S. capital market, influencing corporate growth, market dynamics, and shareholder value. This review paper examines the impact of mergers and acquisitions (M&A) on shareholder value in the U.S. capital market, synthesizing insights from existing literature, theoretical frameworks, and empirical evidence. By analyzing historical trends, evaluation methodologies, and key influencing factors, the study highlights the diverse outcomes of mergers and acquisitions transactions, which range from value enhancement through synergies and strategic alignment to challenges arising from integration inefficiencies and volatile market conditions. This comprehensive analysis highlights the critical importance of understanding the implications of mergers and acquisitions for shareholders and the broader financial ecosystem in fostering sustainable growth and stability. The paper provides actionable recommendations for investors, corporate leaders, and policymakers while identifying areas for further research to refine methodologies and address emerging trends in the dynamic landscape of mergers and acquisitions activities. Although there is an abundance of literature on M&A and shareholder value, this review uniquely synthesizes lessons from iconic twentieth-century transactions with today’s technology-facilitated acquisitions to create updated analytical frameworks and actionable diagnostics for current U.S. capital market.