A synergy measurement model to support the pre-deal decision making in mergers and acquisitions

Garzella, Stefano; Fiorentino, Raffaele

doi:10.1108/md-10-2013-0516

Cited by 43 publications

(62 citation statements)

References 56 publications

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“…If a target later turns out not to be worth its price or the synergies do not generate the expected value, accounting standards enforce extensive write-offs as a result (Ficery et al, 2007). In most cases, PMI and evaluation have failed as the synergy recognition process and due diligence have not been carried out carefully (Garzella & Fiorentino, 2014). If the potential synergies are not captured correctly, it is not possible to evaluate and integrate them in a right way (Ficery et al, 2007).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

“…Garzella and Fiorentino (2014) stated that the category of a synergy determines its other factors and has the most influence on a successful merger. Size and likelihood also depend on timing in respect of the time frame between closing and realising the deal.…”

Section: The Manda Process and Synergiesmentioning

confidence: 99%

“…As the category of synergy seems to be the most important, Garzella and Fiorentino (2014) summarised different approaches for synergy categories. Among other approaches they found:…”

Section: The Manda Process and Synergiesmentioning

confidence: 99%

“…Garzella and Fiorentino (2014) identified four crucial factors that need to be known to realise synergies after closing:…”

Section: The Manda Process and Synergiesmentioning

confidence: 99%

“…Various approaches to categorise synergies already exist (Bruner, 2002;Damodaran, 2005;Eccles, Kersten, & Thomas, 1999;Goold & Campbell, 1998). Timing is determined to realise synergies as quickly as possible after closing (Garzella & Fiorentino, 2014). Yet the various factors of timing remain cloudy and unexplored.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

See 4 more Smart Citations

The Crucial Role of Time in M&A Activities: An Inductive Exploration

Zadrazil¹,

Lehner²,

Losbichler³

2017

JMAA

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Mergers & acquisitions (M&As) are important strategic instruments, yet nearly half of all transactions fail, often resulting in disastrous write-offs and losses for corporations and financing institutions alike -despite promising prospects upfront. Applied research has been trying to find a "panacea" to prevent or at least predict M&A failure, investigating motives, synergies and performance. Despite the growing unease with the stationary explanatory models in literature, research has only marginally focused on the concept of time, with inquiries into market timing and integration speed. Yet other timing concepts have been neglected in concepts so far despite early empirical evidence for their existence. The purpose of this paper is thus to identify and elaborate on the importance of further relevant theories of timing. For this, and true to the exploratory nature of the topic, the authors have chosen a qualitative comparative case study design based on existing case reports which are investigated for narrations highlighting timing concepts. This study reveals six factors which have a crucial impact on the M&A outcome: time of acquisition, M&A duration in its entirety, M&A sequence, synergy chronology, frequency of acquisitions and time to step back. It contributes to theory and practice in outlining the careful attention that needs to be paid in planning in these factors to enhance the chances of a successful M&A transaction.

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Section: Theoretical Backgroundmentioning

confidence: 99%

Section: The Manda Process and Synergiesmentioning

confidence: 99%

“…As the category of synergy seems to be the most important, Garzella and Fiorentino (2014) summarised different approaches for synergy categories. Among other approaches they found:…”

Section: The Manda Process and Synergiesmentioning

confidence: 99%

“…Garzella and Fiorentino (2014) identified four crucial factors that need to be known to realise synergies after closing:…”

Section: The Manda Process and Synergiesmentioning

confidence: 99%

Section: Theoretical Backgroundmentioning

confidence: 99%

See 3 more Smart Citations

The Crucial Role of Time in M&A Activities: An Inductive Exploration

Zadrazil¹,

Lehner²,

Losbichler³

2017

JMAA

View full text Add to dashboard Cite

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Why do some merger and acquisitions deals fail? A global perspective

et al. 2020

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We analyse why some merger and acquisitions (M&A) deals are withdrawn paying particular attention to the economic freedom and legal environment of countries. We use a large dataset based on deals worldwide from over 140 countries during the period 1977–2014. Our core finding is that the likelihood of a deal's withdrawal tends to increase if the economic freedom/quality of legal environment of the acquiring (target) firm's country is higher (lower). These core findings matter more for the non‐financial sector, during non‐crisis years, and in developed financial markets. We also report that the deals have higher tendency to be withdrawn if the target firm's size is larger or its profitability is lower; and the acquiring firm's size is smaller. Furthermore, our analyses reveal that deal characteristics (i.e., deal attitude, means of payment, deal size, ownership sought) also matter in affecting the outcome of announced M&A deals.

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Introduction

Garzella¹,

Fiorentino²

2016

Contributions to Management Science

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A synergy measurement model to support the pre-deal decision making in mergers and acquisitions

Cited by 43 publications

References 56 publications

The Crucial Role of Time in M&A Activities: An Inductive Exploration

The Crucial Role of Time in M&A Activities: An Inductive Exploration

Why do some merger and acquisitions deals fail? A global perspective

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