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| Author | : Suruchi Juneja |
| Publisher | : LAP Lambert Academic Publishing |
| Total Pages | : 80 |
| Release | : 2012 |
| Genre | : |
| ISBN | : 9783847373414 |
Download Pre-Post Acquisition Comparison of Financial Performance of Companies Book in PDF, ePub and Kindle
Acquisitions are used to gain competitive advantage over other firms through gaining greater market share for improving competitiveness of companies and, entering new markets and geographies, capitalizing on economies of scale and broadening the portfolio to reduce business risk, etc. India has emerged as one of the top countries with respect to merger and acquisition deals. Indian companies have been actively involved in acquisitions in India domestically as well as internationally, as India increase its participation in M&A deals. This research study is aimed to study the Pre & Post Acquisition Comparison of Financial Performance Of Acquiring Companies [With special reference to Manufacturing sector in India (2000-2006)] by examining some pre- and post-acquisition financial ratios of these firms and to see the differences in the pre acquisition and post acquisition ratios of the firms that go for acquisitions. The results suggest that acquisitions did not experience any significant increase in profitability of the overall firms in the post acquisition period.
| Author | : Vanita Tripathi |
| Publisher | : |
| Total Pages | : 18 |
| Release | : 2015 |
| Genre | : |
| ISBN | : |
Download Does Financial Performance Improve Post Cross Border Merger and Acquisitions? Book in PDF, ePub and Kindle
The present study focuses upon the comparison between the pre and post merger financial performance of the Indian companies undertaking cross border mergers and acquisitions during 1998-2009. An attempt has been made to assess the performance on an aggregate basis, on the basis of timing of the acquisition - before crisis and during crisis and on the basis of the development status of the foreign targets' economies. The results revealed a significant increase in size accompanied with a decrease in profitability, liquidity and solvency. This could be due to various reasons - industry specific factors, timing of the acquisition, status of the development of the target's economy. The other reasons could be companies' inexperience in foreign markets owing to lesser knowledge of handling cross border mergers and acquisitions as compared to western counterparts. A disaggregated analysis on the basis of timing of crisis reported a significantly lower growth in the size for the Indian companies acquiring during the time of US crisis as compared to those which did acquisitions before the crisis. These companies also accounted a significant deterioration of profitability, liquidity and solvency due to an increase in the operating costs and decline in demand. Although, valuation of the foreign companies especially those located in US and Europe during the time of crisis had reduced but for the operation of the merged firms expenses have to be made. However deals done in developed countries provided a significantly higher increase in the size than those done in developing countries owing to higher number of acquisitions in the former group. But the profitability, liquidity and solvency decline was higher in case of deals accomplished in developed countries. Our results suggest that the companies should diversify their portfolio of international exposure. Developing countries are emerging as new breed of consumers. Thus the focus of cross border mergers and acquisitions should be a balanced one considering the time as well as the location of the target.
| Author | : Dieter Bernhardt Halfar |
| Publisher | : |
| Total Pages | : |
| Release | : 2013 |
| Genre | : |
| ISBN | : |
Download The Effect of Mergers and Acquisitions on Long-run Financial Performance of Acquiring Companies Book in PDF, ePub and Kindle
Mergers and acquisitions continue to enjoy importance as strategies for achieving growth, although their success in creating shareholder value remains contested. The aim of this research was to evaluate whether, in the long-run, acquiring companies created or destroyed value by evaluating the differences between pre- and post-acquisition firm performance, using, abnormal share price performance, operating financial performance and intrinsic value performance metrics. This research used a non-representative, judgemental sample of 29 JSE listed firms to conclude that, on average, mergers and acquisitions destroy value within two years post-acquisition, although some evidence was found in support of acquiring firm value creation in the third year after the acquisition. Results indicated a significant -6.62% decline in acquiring firm average cumulative average abnormal return (ACAAR) between 504 trading days before and after acquisition announcement dates. This finding reversed in year three, resulting in a positive ACAAR of 8.76%. Similarly, average intrinsic value (AIV) performance indicated that between one year before and one year after the acquisition, AIV deteriorated with a significant -0.131. However, between year one and two after the acquisition, AIV recovered by 0.112. Overall evidence indicated positive and significant AIV growth of 0.370 between one year before and three years after the acquisition. The research found insignificant results for the pre and post-acquisition evaluation of industry-adjusted cash-flow return on all assets (IACRAA).
| Author | : Ouarda Merrouche |
| Publisher | : International Monetary Fund |
| Total Pages | : 38 |
| Release | : 2010-12-01 |
| Genre | : Business & Economics |
| ISBN | : 1455254878 |
Download Bank Capital Book in PDF, ePub and Kindle
Using a multi-country panel of banks, we study whether better capitalized banks experienced higher stock returns during the financial crisis. We differentiate among various types of capital ratios: the Basel risk-adjusted ratio; the leverage ratio; the Tier I and Tier II ratios; and the tangible equity ratio. We find several results: (i) before the crisis, differences in capital did not have much impact on stock returns; (ii) during the crisis, a stronger capital position was associated with better stock market performance, most markedly for larger banks; (iii) the relationship between stock returns and capital is stronger when capital is measured by the leverage ratio rather than the risk-adjusted capital ratio; (iv) higher quality forms of capital, such as Tier 1 capital and tangible common equity, were more relevant.
| Author | : Dennis C. Mueller |
| Publisher | : Cambridge, Mass. : Oelgeschlager, Gunn & Hain ; Königstein/Ts. : Verlag A. Hain |
| Total Pages | : 402 |
| Release | : 1980 |
| Genre | : Business & Economics |
| ISBN | : |
Download The Determinants and Effects of Mergers Book in PDF, ePub and Kindle
| Author | : Yakov Amihud |
| Publisher | : Springer Science & Business Media |
| Total Pages | : 249 |
| Release | : 2013-04-17 |
| Genre | : Business & Economics |
| ISBN | : 1475727992 |
Download Bank Mergers & Acquisitions Book in PDF, ePub and Kindle
As the financial services industry becomes increasingly international, the more narrowly defined and historically protected national financial markets become less significant. Consequently, financial institutions must achieve a critical size in order to compete. Bank Mergers & Acquisitions analyses the major issues associated with the large wave of bank mergers and acquisitions in the 1990's. While the effects of these changes have been most pronounced in the commercial banking industry, they also have a profound impact on other financial institutions: insurance firms, investment banks, and institutional investors. Bank Mergers & Acquisitions is divided into three major sections: A general and theoretical background to the topic of bank mergers and acquisitions; the effect of bank mergers on efficiency and shareholders' wealth; and regulatory and legal issues associated with mergers of financial institutions. It brings together contributions from leading scholars and high-level practitioners in economics, finance and law.
| Author | : Neelam Rani |
| Publisher | : |
| Total Pages | : |
| Release | : 2015 |
| Genre | : |
| ISBN | : |
Download Financial Performance Analysis of Mergers and Acquisitions Book in PDF, ePub and Kindle
Purpose - The purpose of this paper is to investigate the impact of mergers and acquisitions (M&A) on corporate performance. It addresses the major question related to the long-term performance of the acquiring firm. Design/methodology/approach - The paper uses the long-term pre- and post-merger financial data to investigate the long-term performance. It compares performance of the acquiring firms before and after M&A. The present work conducts a comprehensive ratio analysis of 14 major ratios related to profitability, efficiency, leverage and liquidity. To ascertain the sources of the better long-term post-M&A returns, the present work decomposes the measure of operating performance into its constituents in terms of DuPont analysis. Findings - Taking a sample of 305 M&As during the period of January 2003 to December 2008, it has been observed that there is significant improvement in the profitability of the acquiring companies involved in M&A. The results pertaining to profitability, efficiency (in terms of utilization of fixed assets), expense and liquidity ratios show that there is an improvement in performance of the acquiring firms in the post-M&A period. The analysis in terms of DuPont shows improvement in the long-term operating profit margin of the acquiring firms. This means higher profit is generated per unit net sales by the acquiring firms after the M&A. The higher profits (profit before interest and taxes and non-operating income) are generated primarily due to the better operating margins. The improved operating cash flows are on account of the improvement in the post-M&A operating margins of the acquirers, not due to the efficient utilization of the assets turnover to generate higher sales. Originality/value - The paper contributes to the existing literature by comparing operating performance and profitability of acquirers before and after M&A using a comprehensive set of 14 ratios for a substantially large sample.
| Author | : David Faulkner |
| Publisher | : OUP Oxford |
| Total Pages | : 774 |
| Release | : 2012-06-07 |
| Genre | : Business & Economics |
| ISBN | : 0191628042 |
Download The Handbook of Mergers and Acquisitions Book in PDF, ePub and Kindle
With its inception at the end of the nineteenth century as a means of consolidation and reorganization, mergers and acquisitions (M&A) have since become quasi-institutionalized as one of the primary strategic options for organizations, as they seek to secure their position in an ever more competitive and globalizing market place. Despite the optimism surrounding M&A as strategic moves, research on post-merger company performance suggests that most firms engaging in M&A activity do not achieve the sought-after performance targets, either immediately or in the years following the deal. What is it that drives M&A activity when research results do not support the performance expectations of these undertakings? Alternatively, have M&A scholars got it all wrong in the way that M&A performance is measured? Is the topic too complex, enduring, and multifaceted to study? The Handbook argues that the field of M&A is in need of a re-rooting: past research needs to be critically reviewed, and fundamental assumptions revisited. A key issue preventing efforts in the practice and study of M&A from achieving dynamic syntheses has been the disciplinary gulf separating strategy, finance, and human relations schools. The Handbook aims to bridge the hitherto separate disciplines engaged in the study and practice of M&A to provide more meaningful results. Toward this end, the Handbook brings together a set of prominent and emerging scholars and practitioners engaged in the study of M&A to provide thought-provoking, state of the art overviews of M&A through four specific 'lenses' - strategic, financial, socio-cultural, and sectorial approaches. By summarizing key findings in current research and exploring ways in which the differing approaches could and should be 'synthesized', it aims to highlight the key issues facing M&A practitioners and academics at the dawn of the third millennium.
| Author | : Hong Zou |
| Publisher | : |
| Total Pages | : |
| Release | : 2017 |
| Genre | : |
| ISBN | : |
Download A Study on the Role of Financial Performance in Pre and Post Mergers and Acquisitions Transactions Book in PDF, ePub and Kindle
| Author | : Stephen A. Rhoades |
| Publisher | : |
| Total Pages | : 30 |
| Release | : 1977 |
| Genre | : Bank holding companies |
| ISBN | : |
Download The Performance of Bank Holding Company Affiliated Finance Companies Book in PDF, ePub and Kindle
