Mergers and Acquisitions: A Conceptual Review

Malik, Muhammad Faizan; Anuar, Melati Ahmad; Khan, Shehzad; Khan, Faisal

doi:10.5296/ijafr.v4i2.6623

Cited by 26 publications

(27 citation statements)

References 37 publications

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“…Operating synergy in acquisition will provide sales resources and human resources that will be mutually used by both companies so they can improve company performance. The purpose of operating synergy in acquisitions is more as an achievement rather than increasing sales potential, decreasing production costs and decreasing operating costs (Malik, Khan, Melati, Khan, & Khan, 2014;Ogada, Njuguna, & Achoki, 2016).…”

Section: Operating Synergymentioning

confidence: 99%

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The Effect of Acquisition Synergy on Firm Perfomance moderated by Firm Reputation

Edi¹,

Basri²,

Arafah³

2020

jafas

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This study was conducted to examine the impact of the operating synergy, financial synergy and firm reputation toward firm performance in merger and acquisition processes. This study also examines how firm reputation moderates the impact of operating synergy and financial synergy toward firm performance. The object of this research are companies involved in mergers and acquisitions between 2010 and 2016. Design/methodology/approach: The purposive sampling method is used to select the research sample. The descriptive statistical test, outlier test and hypothesis test is used to analyze the data using e-eviews program. The study assumed Buy and Hold Abnormal Return (BHAR) as the performance to measure a successful acquisition, and the factors that have an impact on acquisition performance are taken as being operating synergy, financial synergy and firm reputation. Findings: The results of this study show that by maximizing the operating synergy and firm reputation, this can improve the BHAR of an acquisition event, and a firm will a weak reputation can strengthen the BHAR by maximizing the operating synergy. Practical implications: These findings will be very helpful to management to maximize their firm performance using merger and acquisition as their strategy and firm reputation as their intangible resources. Originality/value: This article provides a new insight of acquisition research as to how firm reputation moderates the impact of acquisition synergy to achieve firm performance.

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Section: Operating Synergymentioning

confidence: 99%

“…In an acquisition, financial synergy is achieved by reducing tax costs, reducing funding costs, improving financial structure or raising the loan platform (Malik et al, 2014). Financial synergy can be measured by improved debt capacity.…”

Section: Financial Synergymentioning

confidence: 99%

The Effect of Acquisition Synergy on Firm Perfomance moderated by Firm Reputation

Edi¹,

Basri²,

Arafah³

2020

jafas

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“…This trend was initially limited to developed countries, especially the United States and the United Kingdom. The last decade of the 20 th century has witnessed a threefold increase in the number of acquisitions in the United States, and a fivefold increase in value has been reported (Malik et al, 2014). This trend has moved to other countries where competition among small and large companies worldwide has increased as a result of globalization.…”

Section: Acquisitionmentioning

confidence: 99%

The Effect of Acquisition on Income Statement Items in Acquired Company (Subsidiary Company) - Case Study

Hayek¹

2018

IJEF

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The current study aimed at identifying the effect of acquisition on income statement items in acquired company (subsidiary company), a case study of Irbid Electricity (IDECO). In order to achieve this objective, the researcher has carried out an analytical study that applied the descriptive analytical approach, using the necessary scientific knowledge on the different aspects of the study by reference to the previous studies and the scientific references, the use of the statistical approach to analyze the study data represented by the actual data taken from Irbid Electricity (IDECO) for the period (2002)(2003)(2004)(2005)(2006)(2007)(2008)(2009)(2010)(2011)(2012)(2013)(2014)(2015)(2016). The results of the study showed statistically significant differences in energy sales average, energy purchase cost, other operating revenues, other revenues, operating expenses, and earning per share before and after acquisition, and also, the results have shown no significant differences between the average of other expenses before and after acquisition. The most important recommendations of the study were the necessity of taking advantage of the experiences of acquisitions and thinking of it seriously, working to raise awareness of the importance of acquisition and clarify its positive effects, and to benefit from global experiences in the acquisition and its positive impact.

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“…Las fusiones y adquisiciones (F&A) implican la unión de dos o más empresas (Allen, Lummer, McConell, & Reed, 1995) independientemente del sector en el que se encuentre para formar una nueva entidad que permita ingresar a nuevos mercados o a una nueva área de negocio (Malik, Anuar, Khan, & Khan, 2014). Las adquisiciones se utilizan con frecuencia cuando la empresa carece de competencias distintivas que le permita competir en una industria, por ende, dispone de su capital para comprar una empresa establecida que sí las posea (Hill & Jones, 2009;Malik, Anuar, Khan, & Khan, 2014).…”

Section: Fusiones Y Adquisicionesunclassified

Análisis teórico sobre la reestructuración de la cartera de negocios y su implicación empresarial

Riofrío

Ycaza²

2018

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El objetivo principal de este trabajo es analizar conceptualmente el estudio de la reestructuración de la cartera de negocios (RCN) y su efecto en los resultados de las empresas. Para el desarrollo del presente trabajo se adopta una metodología cualitativa mediante una revisión de diferentes fuentes literarias que incluyen tanto artículos científicos como libros. De acuerdo a la evidencia presentada, encontramos que los mecanismos más utilizados para la RCN son: (i) desinversiones (venta de activos, subsidiaria y empresa filial parcial), y (ii) fusiones y adquisiciones. Adicionalmente, se observa que de acuerdo a la literatura científica, estos mecanismos tienen, por lo general, un efecto positivo en los resultados de las empresas a excepción de las fusiones y adquisiciones que tienen un efecto en mayor parte negativo.

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Mergers and Acquisitions: A Conceptual Review

Cited by 26 publications

References 37 publications

The Effect of Acquisition Synergy on Firm Perfomance moderated by Firm Reputation

The Effect of Acquisition Synergy on Firm Perfomance moderated by Firm Reputation

The Effect of Acquisition on Income Statement Items in Acquired Company (Subsidiary Company) - Case Study

Análisis teórico sobre la reestructuración de la cartera de negocios y su implicación empresarial

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