What macroeconomic conditions or risk diversification wishes might lead to an M&A?

Changes in macroeconomic factors such as commodity prices might lead a firm towards a M&A conclusion. Technological development: › Strong technology and product development in an industry often reduces the effect of a merger relatively quickly through new entrants › Recall industry life cycle: this happens when industry is still growing › Incumbent may find it optimal to buy the new technology so that not lacking behind in the future and secure market power – in favor for mergers (+) › Especially when incumbent is already in a more mature stage (relative to the market)