Do synergies exist in related acquisitions? A meta-analysis of acquisition studies
Do synergies exist in related acquisitions? A meta-analysis of acquisition studies
Mergers and acquisitions (M&A) aim to increase the wealth of shareholders of the acquiring company, in particular by creating synergies. It is often assumed that relatedness is a source of synergies. Our study distinguishes between business, cultural, technological, and size relatedness. It discusses the reasons why these different forms of relatedness can lead to an acquisition success and we conduct a meta-analysis of 67 prior M&A studies. Results indicate that positive effects can be expected under specific conditions only and have a limited overall impact on acquisition success. A moderator analysis finds that synergies stemming from relatedness depend on industry-, country-, and investor-characteristics
mergers and acquisitions, meta-analysis, business relatedness, size relatedness, technological relatedness, cultural relatedness, synergies
75-116
Homberg, Fabian
31042a5c-cd37-46a1-bdde-53abb55f1072
Rost, K.
06a9f410-b714-4cf1-a199-08ffe30e979e
Osterloh, M.
83aa045b-2074-4936-80c3-07df09456c37
July 2009
Homberg, Fabian
31042a5c-cd37-46a1-bdde-53abb55f1072
Rost, K.
06a9f410-b714-4cf1-a199-08ffe30e979e
Osterloh, M.
83aa045b-2074-4936-80c3-07df09456c37
Homberg, Fabian, Rost, K. and Osterloh, M.
(2009)
Do synergies exist in related acquisitions? A meta-analysis of acquisition studies.
Review of Managerial Science, 3 (2), .
(doi:10.1007/s11846-009-0026-5).
Abstract
Mergers and acquisitions (M&A) aim to increase the wealth of shareholders of the acquiring company, in particular by creating synergies. It is often assumed that relatedness is a source of synergies. Our study distinguishes between business, cultural, technological, and size relatedness. It discusses the reasons why these different forms of relatedness can lead to an acquisition success and we conduct a meta-analysis of 67 prior M&A studies. Results indicate that positive effects can be expected under specific conditions only and have a limited overall impact on acquisition success. A moderator analysis finds that synergies stemming from relatedness depend on industry-, country-, and investor-characteristics
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Published date: July 2009
Additional Information:
V19ow
Times Cited:11
Cited References Count:107
Keywords:
mergers and acquisitions, meta-analysis, business relatedness, size relatedness, technological relatedness, cultural relatedness, synergies
Organisations:
Southampton Business School
Identifiers
Local EPrints ID: 398712
URI: http://eprints.soton.ac.uk/id/eprint/398712
ISSN: 1863-6683
PURE UUID: 3653e332-c51c-4aff-8e44-eee8e747dbbd
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Date deposited: 29 Jul 2016 14:25
Last modified: 15 Mar 2024 01:39
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Author:
Fabian Homberg
Author:
K. Rost
Author:
M. Osterloh
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