The impact of M&A on the operating performance: An empirical analysis of the Professional Services Industry

Backgrounds: Facing the rising tide of globalisation, firms cannot only compete with domestic counterparts. Companies should keep up with cross-border competitors in the circumstances nowadays. The strong demands for searching internal and external improvements encourage companies which include firm...

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Main Author: Xu, Wanting
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2013
Online Access:https://eprints.nottingham.ac.uk/26679/
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author Xu, Wanting
author_facet Xu, Wanting
author_sort Xu, Wanting
building Nottingham Research Data Repository
collection Online Access
description Backgrounds: Facing the rising tide of globalisation, firms cannot only compete with domestic counterparts. Companies should keep up with cross-border competitors in the circumstances nowadays. The strong demands for searching internal and external improvements encourage companies which include firms in professional services industry to participate in M&A activities which are increasingly applied nowadays. However, the impact of M&A of professional services has not been researched enough. Methods: In order to explore the influences of M&A activities on operating performance in the professional services industry, primary data and analytical discussion were obtained from Zephyr. Several tests are applied to detect the effects of M&A. Further regression analyses of recent M&A events were conducted by using STATA to arrive at the conclusion. Purpose: This thesis makes an attempt to explore whether M&A can bring improvements for acquirer and target firms or not, and how M&A and financial related factors can affect the operating performance. Findings: M&A activities can negatively affect the operating performance of both bidding and target firms. Factors such as firm size and pre-merger performance are positively correlated with post-merger operating performance, while deal value, market capitalisation and operating revenue can negatively influence post-merger operating performance. Country elements which refer to geographic distribution are not related with operating performance. Keywords: M&A, acquirer, target, financial factors, professional services
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institution University of Nottingham Malaysia Campus
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spelling nottingham-266792017-10-19T13:35:51Z https://eprints.nottingham.ac.uk/26679/ The impact of M&A on the operating performance: An empirical analysis of the Professional Services Industry Xu, Wanting Backgrounds: Facing the rising tide of globalisation, firms cannot only compete with domestic counterparts. Companies should keep up with cross-border competitors in the circumstances nowadays. The strong demands for searching internal and external improvements encourage companies which include firms in professional services industry to participate in M&A activities which are increasingly applied nowadays. However, the impact of M&A of professional services has not been researched enough. Methods: In order to explore the influences of M&A activities on operating performance in the professional services industry, primary data and analytical discussion were obtained from Zephyr. Several tests are applied to detect the effects of M&A. Further regression analyses of recent M&A events were conducted by using STATA to arrive at the conclusion. Purpose: This thesis makes an attempt to explore whether M&A can bring improvements for acquirer and target firms or not, and how M&A and financial related factors can affect the operating performance. Findings: M&A activities can negatively affect the operating performance of both bidding and target firms. Factors such as firm size and pre-merger performance are positively correlated with post-merger operating performance, while deal value, market capitalisation and operating revenue can negatively influence post-merger operating performance. Country elements which refer to geographic distribution are not related with operating performance. Keywords: M&A, acquirer, target, financial factors, professional services 2013-09-19 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/26679/1/MSc_Finance_and_Investment_Dissertation_Wanting_Xu.pdf Xu, Wanting (2013) The impact of M&A on the operating performance: An empirical analysis of the Professional Services Industry. [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle Xu, Wanting
The impact of M&A on the operating performance: An empirical analysis of the Professional Services Industry
title The impact of M&A on the operating performance: An empirical analysis of the Professional Services Industry
title_full The impact of M&A on the operating performance: An empirical analysis of the Professional Services Industry
title_fullStr The impact of M&A on the operating performance: An empirical analysis of the Professional Services Industry
title_full_unstemmed The impact of M&A on the operating performance: An empirical analysis of the Professional Services Industry
title_short The impact of M&A on the operating performance: An empirical analysis of the Professional Services Industry
title_sort impact of m&a on the operating performance: an empirical analysis of the professional services industry
url https://eprints.nottingham.ac.uk/26679/