Assessing critical mass: sure size matters, but integration potential carries more weight in merger assessments. (Exclusive Report).

Playthings, June, 2003 by Bilenko, Eric

Over the last several years, merger activity in the toy and collectibles industry has slowed--not surprising given the overall economic climate. In 2002, there were 15 reported merger and acquisition transactions in the toys and collectibles industries, representing just $83.1 million in disclosed value.

In contrast, over the past five years there has been a sum of 89 transactions for a total disclosed value of $1.7 billion. This translates into an average of 18 transactions per year and $344.5 million in annual transaction value. It is likely that this decline in the number and value of transactions over the past five years reflects a shifting emphasis on the part of the industry to strategic value and effective integration, from critical mass. ...

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