 DO ROMANIAN MERGERS REALLY CREATE VALUE?Anca-Simona Hromei
SEA - Practical Application of Science, 2015, issue 9, 59-62 Abstract: The realities of our modern society demonstrate that businesses operate in a competitive environment, which requires continuous improvement and development of production and sales. In this context, for financial, economic and fiscal reasons, companies resort to a process of concentration, through the merger of all the factors involved in the fulfilment and diversification of their activities. Often, the reasons for engaging in a merger refer to the fact that two merged companies create, in terms of value, an entity that exceeds the individual values of the two participants if they were to continue to activate separately. This paper aims at analysing whether the well-known relationship ‘1+1=3’, which describes merger synergies, applies at the Romanian level. For this reason, each of the values of 77 merged companies were compared with the sum of the individual values of the firms that initially created them. It was found that 56% of the mergers analysed generated added value for shareholders. Keywords: Merger; Synergy; Company Valuation; Net Assets Method (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:cmj:seapas:y:2015:i:9:p:59-62 Access Statistics for this article SEA - Practical Application of Science is currently edited by Romanian Foundation for Business Intelligence More articles in SEA - Practical Application of Science from Romanian Foundation for Business Intelligence, Editorial Department |
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