This post was originally published on The Economic Times
The so-called “Magnificent Seven” companies of the US are, in reality, a constellation of nearly a thousand businesses around the world. Over the last decade, these seven firms have collectively executed more than a thousand acquisitions. The result is a flywheel of scale, innovation, and value creation that has reshaped global markets. To put this in context, the merger and acquisition (M&A) market of the US is 17-19 times larger than its IPO market. In India, that ratio is approximately 1-1.5 times. Even more strikingly, the combined market capitalisation of the “Magnificent Seven” alone is four to five times larger than the entire Indian stock market.
The success of these global giants is not accidental. They have mastered the use of M&A as a deliberate tool to acquire innovation, accelerate growth, and enter new markets. Acquisitions are not viewed as opportunistic deals—they are integral to the business model. This creates a virtuous cycle: higher valuations and cash flows enable further acquisitions, while those acquisitions, in turn, fuel growth and reinforce valuations. Innovators benefit by gaining access to scale, capital, and talent, while larger companies benefit by integrating
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