Why do we need M&A after all
who benefit the most and why from M&A
Who motivates and discourages M & A and why
Hi Fazal. Some time ago i read an article from McKinsey called Perspectives on Mergers and intergrations. It is not a very long report but at least it will give some first ideas and what are their insights in what kind of mergers and acquisitions can create value and which ones can destroy it. If i remember right they also propose a classification system. Anyway, topic is quite interesting so i am sure there must be plenty of literature done by Investment banks already so i would recommend you have a look to them.
these are basic concepts of M&A. if you google it you can find many articles and useful links to understand M&A.
Hi,
its difficult to identify a trend, in the latest literature on M&A but some studies are giving new insights on specific aspects of the mergers deals, anfd their consequences:
"Target revaluation after failed takeover attempts: Cash versus stock", Journal of financial economics, 2016 January , 119(1) ,Pages 92-106
Ulrike Malmendier, Marcus M. Opp, Farzad Saidi
"Extraordinary acquirers" Journal of Financial Economics 2015, 116, p 314-330
Andrey Golubov Alfred Yawson Huizhong Zhang
" How do acquirers choose between mergers and tender offers?", Journal of financial economics, 2015, 116, Pages 331-348.
David Offenberg, Christo Pirinsky
"CEO Preferences and Acquisitions" , Journal of finance December 2015 vol 70 (pages 2813–2852) DIRK JENTER and KATHARINA LEWELLEN
Best regards
Hi,
Some more insights and cross-borders mergers seem also to be important:
"What premiums do target shareholders expect? Explaining
negative returns upon offer announcements", Journal of Corporate Finance, 31, 2015 p 33-53, James S. Ang, Ahmad K. Ismail .
The determinants of Cross-borders mergers and acquisitions", Journal of Finance, 2012, 67, p 10451082. I ErelL, RC Liao M S Wiesback
Best regards
Hi,
ENd :I found two more papers:
Koerniadi H, C Krishnamurti, A Tourani-Rad, "Cross border mergers and acquisitions and default risk ", International Review of Financial Analysis, 2015, 42, p 336-348..
Bessler, C Schneck, J Zimmermann "Bidder contests in international mergers and acquisitions: The impact of toeholds, preemptive biddings and termination fees and ", International Review of Financial Analysis, 2015, 42, p 4-23.
best regards
Hi Fazal,
Here is a paper that provides a holistic view on M&A
Gomes, E., Angwin, D., Weber, Y. and Tarba, S. (2013) ‘Critical Success Factors Through the Mergers and Acquisitions Process: Revealing Pre- and Post- M&A Connections for Improved Performance.’ Thunderbird International Business Review. Vol. 55 (1): 13-35.
Best wishes,
Emanuel
Dear Fazal Haleem
Greetings,
Please find the attached file about your topic
Best Regards
Dear Fazal,
The following paper may be useful as it provides an overview of the main M&A success factors:
Gomes, E., Angwin, D. N., Weber, Y., & Yedidia Tarba, S. (2013). Critical success factors through the mergers and acquisitions process: revealing pre‐and post‐M&A connections for improved performance. Thunderbird International Business Review, 55(1), 13-35.
Best wishes,
Emanuel
Hi,
I found this latest paper, that could be of interest for you:
A M ARIKAN, R STULZ, "Corporate acquisitions, diversification, and the firm 's life cycle", Journal of Finance February 2016, Vol 71, p 139 -193.
Best regards.
HI,
One more paper!
D Jenter K Lewellen, "CEO preferences and acquisitions", Journal of Finance 2016, forthcoming
Best regards
Hi
Another new paper!
A Bodnaruk, M Rossi, "Dual ownership, returns and voting in mergers", Journal of financial Economics, 2016, 120, p 58-80.
Best regards.
Hi,
I think that when growth is very slow, the only mean for a corporate firm to grow faster is to make mergers and acquisitions. This is specially true when interest rates are very low as today. You can borrow easily money to finance your deals.
Acquired company shareholders benefit from the deals, but for the acquiring firms competition is lessened, and market power takes place (higher prices?). Long term effects may also intervene (you may stimulate your innovation rate, buying some companies with patents and so on). In fact you can buy on the corporate market what you are lacking. Mergers may be discouraged by the antitrust law.
greetings.
Why do we need M&A after all
M&As are part of robust economic activity in any country. The interesting fact about M&A is that during fierce competition M&As provide room for innovation and motivates organisation to be a part of active agents in innovation.
Who benefit the most?
It depends. Ideally the fundamental goal of any M&A activity is creating synergy. However, it also depends on the mode of payments, deal size and M&A attitude. According to the latest research we cannot exactly specify who benefit the most as there are multiple stakeholders in the company.
Who Motivates?
High Level of Competition, Lower Interest Rates (Check M&A activity in the US during recession), excess funds.
Good Luck
Why do we need M&A after all
M&As are part of robust economic activity in any country. The interesting fact about M&A is that during fierce competition M&As provide room for innovation and motivates organisation to be a part of active agents in innovation.
Who benefit the most?
It depends. Ideally the fundamental goal of any M&A activity is creating synergy. However, it also depends on the mode of payments, deal size and M&A attitude. According to the latest research we cannot exactly specify who benefit the most as there are multiple stakeholders in the company.
Who Motivates?
High Level of Competition, Lower Interest Rates (Check M&A activity in the US during recession), excess funds.
Good Luck
Hi
Why do we need M&A after all
M&As are part of robust economic activity in any country. The interesting fact about M&A is that during fierce competition M&As provide room for innovation and motivates organisation to be a part of active agents in innovation.
Who benefit the most?
It depends. Ideally the fundamental goal of any M&A activity is creating synergy. However, it also depends on the mode of payments, deal size and M&A attitude. According to the latest research we cannot exactly specify who benefit the most as there are multiple stakeholders in the company.
Who Motivates?
High Level of Competition, Lower Interest Rates (Check M&A activity in the US during recession), excess funds.
Good Luck
There is a collection of free empirical papers on M&A below. Browse the thematical collections of free papers on corporate governance at our web-site https://www.virtusinterpress.org/A-set-of-updated-thematic-paper-collections-from-Virtus-Interpress.html to find more than 30 collections of more than 1200 free papers.