Factors of Success and Failure in Mergers and Acquisitions.
详细信息
文摘
Over the past decades,many firms have been successfully implementing strategic mergers and acquisitions to achieve inorganic growth or to boost the corporate overall performance. This dissertation examined the factors of success in mergers and acquisitions. Indeed,this quantitative research has focused on both the target firms pre-merger factors) and the acquiring firms post-merger factors). The factors were analyzed statistically using the comprehensive dataset of 864 U.S publicly traded transactions,deal value ranges from $300 million to $3 billion during 2002 to 2011 study time period. Findings of this research pointed out several important key factors to determine the success of M&A transactions. This study confirmed that M& A doesnt create any significant improvements for the acquiring firms and their shareholders. In term of the targets relative size,this study found that the successful acquirers often acquire the targets relative size below 25%. For the method of payment,this study found that the combined method cash & stock) was the most effective method. In term of the M& A types,this study found that the diversification merger generated the highest return on equity ROE). However,the results from these factors were statistically insignificant. For the transaction values deal value) and the acquisition timing deal date),this study confirmed a statistically significant result in determining the success in M& A. Finally,this study also identified the patterns of purchase by the acquirers include: operating margin,targets revenue,horizontal merger,cash method,and deal value is below $1 billion.