Creation of Synergies Through Mergers and Acquisitions
Although Mergers and Acquisitions have seemingly high risks attached, they have been around for almost a century, and are an important tool in the strategic growth of a firm. There has been ample Empirical evidence on the creation and destruction of value through the M&A activity, which have sho...
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2007
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| Subjects: | |
| Online Access: | https://eprints.nottingham.ac.uk/21720/ |
| _version_ | 1848792293174149120 |
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| author | Kedia, Vasudha |
| author_facet | Kedia, Vasudha |
| author_sort | Kedia, Vasudha |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | Although Mergers and Acquisitions have seemingly high risks attached, they have been around for almost a century, and are an important tool in the strategic growth of a firm. There has been ample Empirical evidence on the creation and destruction of value through the M&A activity, which have showed diverse results. Drawing upon this framework the primary focus of this research is to study whether value was created or destroyed for the target and/or bidding firms and shareholders involved in an M&A activity.
A case study of two diverse companies, namely that of Exxon and Mobil and AOL and Time Warner, supplemented by a literature review has been undertaken in order to see whether both these entities have benefited from the merger activity or not. It also comments on the performance and profitability of M&A activities using the Accounting Study Approach, which analyses the financial performance of the companies involved in an M&A activity, and the Event Study Approach, which measures the returns to the shareholders of the target and bidding firms. The research also outlines various factors which account for value-creation and value-destruction in a merger activity.
From the results obtained from these studies, this discussion strongly suggests that it is the target firm and their shareholders, who benefit from the M&A activity. Thus from a shareholders point of view, it is better to be a seller than a buyer. |
| first_indexed | 2025-11-14T18:42:06Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-21720 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T18:42:06Z |
| publishDate | 2007 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-217202017-12-21T02:22:44Z https://eprints.nottingham.ac.uk/21720/ Creation of Synergies Through Mergers and Acquisitions Kedia, Vasudha Although Mergers and Acquisitions have seemingly high risks attached, they have been around for almost a century, and are an important tool in the strategic growth of a firm. There has been ample Empirical evidence on the creation and destruction of value through the M&A activity, which have showed diverse results. Drawing upon this framework the primary focus of this research is to study whether value was created or destroyed for the target and/or bidding firms and shareholders involved in an M&A activity. A case study of two diverse companies, namely that of Exxon and Mobil and AOL and Time Warner, supplemented by a literature review has been undertaken in order to see whether both these entities have benefited from the merger activity or not. It also comments on the performance and profitability of M&A activities using the Accounting Study Approach, which analyses the financial performance of the companies involved in an M&A activity, and the Event Study Approach, which measures the returns to the shareholders of the target and bidding firms. The research also outlines various factors which account for value-creation and value-destruction in a merger activity. From the results obtained from these studies, this discussion strongly suggests that it is the target firm and their shareholders, who benefit from the M&A activity. Thus from a shareholders point of view, it is better to be a seller than a buyer. 2007 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/21720/1/CREATION_OF_SYNERGIES_THROUGH_MERGERS_AND_ACQUISTIONS.pdf Kedia, Vasudha (2007) Creation of Synergies Through Mergers and Acquisitions. [Dissertation (University of Nottingham only)] (Unpublished) Mergers and Acquisitions |
| spellingShingle | Mergers and Acquisitions Kedia, Vasudha Creation of Synergies Through Mergers and Acquisitions |
| title | Creation of Synergies Through Mergers and Acquisitions |
| title_full | Creation of Synergies Through Mergers and Acquisitions |
| title_fullStr | Creation of Synergies Through Mergers and Acquisitions |
| title_full_unstemmed | Creation of Synergies Through Mergers and Acquisitions |
| title_short | Creation of Synergies Through Mergers and Acquisitions |
| title_sort | creation of synergies through mergers and acquisitions |
| topic | Mergers and Acquisitions |
| url | https://eprints.nottingham.ac.uk/21720/ |