Large mergers are out (for the most part), so the army that has been developed to push mergers will find new targets. In response to competitive challenges from abroad and less capital available to potential buyers, the new advice is likely to advocate that large corporations make smaller, more focused acquisitions.

American industry is in the midst of a new merger boom. Recent studies, however, show that such mergers do not necessarily enhance profits, boost productivity, aid efficiency, or result in social good. Given these findings, you ought to seriously question whether a proposed merger is a sound strategic decision before acting on it.

Can you make money through acquisitions? Despite thousands of mergers over the past two decades and scores of economic studies, there is remarkably little good information on this topic. The problem is that we have had little information about the performance of companies before they were acquired and even less about their performance after takeover.

Megamergers often do not benefit shareholders, managers, or the public. One does not need to have acquisitions followed by divestiture or dismemberment, followed by more acquisitions. Unless corporate managers learn from a decade of experience, one can expect a continuing parade of profitless megamergers.