DO ROMANIAN MERGERS REALLY CREATE VALUE?
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 th...
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| Format: | Article |
| Language: | English |
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Romanian Foundation for Business Intelligence
2015-12-01
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| Series: | SEA: Practical Application of Science |
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| Online Access: |
http://seaopenresearch.eu/Journals/articles/SPAS_9_10.pdf
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| _version_ | 1819229763360784384 |
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| author | Anca-Simona HROMEI |
| author_facet | Anca-Simona HROMEI |
| author_sort | Anca-Simona HROMEI |
| collection | DOAJ |
| description | 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. |
| first_indexed | 2024-12-23T11:18:20Z |
| format | Article |
| id | doaj.art-50f3c89c3c4f49c19081f873cd4ab476 |
| institution | Directory Open Access Journal |
| issn | 2360-2554 |
| language | English |
| last_indexed | 2024-12-23T11:18:20Z |
| publishDate | 2015-12-01 |
| publisher | Romanian Foundation for Business Intelligence |
| record_format | Article |
| series | SEA: Practical Application of Science |
| spelling | doaj.art-50f3c89c3c4f49c19081f873cd4ab4762022-12-21T17:49:09ZengRomanian Foundation for Business IntelligenceSEA: Practical Application of Science2360-25542015-12-01III9 (3/2015)5962seapas:y:2015:i:9:p:59-62DO ROMANIAN MERGERS REALLY CREATE VALUE?Anca-Simona HROMEI0 Doctoral School of Economics and Business Administration, ‘Alexandru Ioan Cuza’ University of Iasi, Romania 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. http://seaopenresearch.eu/Journals/articles/SPAS_9_10.pdf MergerSynergyCompany ValuationNet Assets Method |
| spellingShingle | Anca-Simona HROMEI DO ROMANIAN MERGERS REALLY CREATE VALUE? SEA: Practical Application of Science Merger Synergy Company Valuation Net Assets Method |
| title | DO ROMANIAN MERGERS REALLY CREATE VALUE? |
| title_full | DO ROMANIAN MERGERS REALLY CREATE VALUE? |
| title_fullStr | DO ROMANIAN MERGERS REALLY CREATE VALUE? |
| title_full_unstemmed | DO ROMANIAN MERGERS REALLY CREATE VALUE? |
| title_short | DO ROMANIAN MERGERS REALLY CREATE VALUE? |
| title_sort | do romanian mergers really create value |
| topic | Merger Synergy Company Valuation Net Assets Method |
| url |
http://seaopenresearch.eu/Journals/articles/SPAS_9_10.pdf
|
| work_keys_str_mv | AT ancasimonahromei doromanianmergersreallycreatevalue |