“Hollowing Out”—Myth and Reality: Corporate Takeovers in an Age of Transformation, Volume I

This 104-page report, one of two volumes, explores the issue of “hollowing out” in an effort to clarify the impact of corporate takeovers on Canada and its businesses, and to probe the question, Why are so many people worried about the takeovers? After reviewing the underlying theories of the issue, the report discusses the mechanics of mergers and acquisitions (M&As). It considers how actions taken in the corporate interest result in corporate transformations, and discusses how M&A activity fits into this broad context. First, the authors look at the fortunes of the top 200 largest Canadian companies in 1990 (based on annual revenues) and note the forms of corporate transformations that occurred between 1990 and 2007. Second, they examine the data for all large takeovers in Canada since 1994. Lastly, they analyze the data and findings from the 30 firm-level cases explained in detail in Volume II.

This report comprises three volumes exploring the nature and impact of corporate takeovers in Canada.
The Executive summary examines the overall impact of takeovers on Canada.

Volume I presents the theory, macro data, and aggregated data from case studies relating to “corporate takeover effects” (CTEs) on target companies.

Volume II presents 30 detailed case studies in three categories: foreign takeovers of Canadian companies, Canadian takeovers of Canadian companies, and Canadian takeovers of foreign companies.

To purchase hard copies of all three volumes for $165 please call us at 1-866-711-2262.