In a sluggish economy with few obvious opportunities, a big merger has become the only way to acquire growth or a new product or new technology and ensure that the chief executive holds on to powerWorld-changing corporate transactions just seem to keep coming. It won't last, however.The number of multibillion-dollar deals announced in recent weeks is staggering by any measure, particularly in an election year, when the uncertainty tends to drive away deals.Time Warner's & AT&T's $85.4-billion proposed tie-up has dominated the headlines as consumers latch on to tales of media dominance, but in October alone, $329-billion worth of deal activity in the United States has been announced, according to Thomson Reuters, a record. The worldwide number, $483.1 billion, is also no slouch and the fifth highest on record. Other gigantic deals include General Electric's combination of its oil business with that of Baker Hughes, British American Tobacco's $47-billion takeover offer for Reynol

Blockbuster deals in a race to stay ahead of competition

The unicorn wars are coming, as the downturn in the market will force these onetime highfliers to seek money at valuations below their earlier billion-dollar-plus levels, known as "down rounds."Whether you are a spectator or part of the blood bath, here is what you can expect in the coming clashes among employees, founders and investors.Common Versus PreferredThe biggest battle in the down rounds will be between the common and the preferred shareholders.The fight will be a result of the way that the venture capital investments are structured. Employees and founders often hold common shares that sit below preferred shares held by the venture capitalists. The preferred shares typically have liquidation preferences and rights against being diluted, while the common shareholders have no such protections. The preferred shares are convertible into common shares at a price per share that reflects the valuation of the company at the time of the investment.Liquidation preferences provide that t

Expect some unicorns to lose their horns, and it won't be pretty

The hostile takeover rose from the dead and the American deal market revived while Europe and Asia were moribund

Steven Davidoff Solomon: Success and failure in a year of prominent deals

Companies are going from zero to billion-dollar valuations faster than ever before, despite a lack of revenue and, perhaps, even a market plan

Steven Davidoff Solomon

Steven Davidoff Solomon

Steven Davidoff Solomon

Blockbuster deals in a race to stay ahead of competition

Expect some unicorns to lose their horns, and it won't be pretty

Steven Davidoff Solomon: Success and failure in a year of prominent deals

Steven Davidoff Solomon: Throwing money at start-ups in frenzy to find the next Uber