Premises and Limitations in Defining and Measuring Synergy from M&As
Mergers and acquisitions are performed worldwide mainly because of synergy. Although many invoke the term synergy as the key motivation of why they engage in M&As, research has led us to understand that it is not very clear in terms of what it actually is. In the scientific literature, synergy i...
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| Format: | Article |
| Language: | English |
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Ovidius University Press
2017-01-01
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| Series: | Ovidius University Annals: Economic Sciences Series |
| Subjects: | |
| Online Access: | http://stec.univ-ovidius.ro/html/anale/RO/2017-2/Section%20V/1.pdf |
| _version_ | 1818506818864807936 |
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| author | Aevoae George Marian |
| author_facet | Aevoae George Marian |
| author_sort | Aevoae George Marian |
| collection | DOAJ |
| description | Mergers and acquisitions are performed worldwide mainly because of synergy. Although many invoke the term synergy as the key motivation of why they engage in M&As, research has led us to understand that it is not very clear in terms of what it actually is. In the scientific literature, synergy is mostly defined as being “2+2=5”. Thus, we first thought that it can only be a positive effect. But, latter on, we found out that synergy is not only positive, it can be negative as well, known as negative synergy or dyssynergy. The purpose of this paper is to shed some light on what is synergy, how can we quantify and classify it and why acquiring firms tend to pay more for the target firm. We believe that there is a link between the amount of premium paid for a target firm and the expectations for synergy. |
| first_indexed | 2024-12-10T22:09:47Z |
| format | Article |
| id | doaj.art-958a33a4fc4a4d70971716aa2b429f12 |
| institution | Directory Open Access Journal |
| issn | 2393-3127 2393-3127 |
| language | English |
| last_indexed | 2024-12-10T22:09:47Z |
| publishDate | 2017-01-01 |
| publisher | Ovidius University Press |
| record_format | Article |
| series | Ovidius University Annals: Economic Sciences Series |
| spelling | doaj.art-958a33a4fc4a4d70971716aa2b429f122022-12-22T01:31:39ZengOvidius University PressOvidius University Annals: Economic Sciences Series2393-31272393-31272017-01-01XVII2493498Premises and Limitations in Defining and Measuring Synergy from M&AsAevoae George Marian0"Alexandru Ioan Cuza" University of IasiMergers and acquisitions are performed worldwide mainly because of synergy. Although many invoke the term synergy as the key motivation of why they engage in M&As, research has led us to understand that it is not very clear in terms of what it actually is. In the scientific literature, synergy is mostly defined as being “2+2=5”. Thus, we first thought that it can only be a positive effect. But, latter on, we found out that synergy is not only positive, it can be negative as well, known as negative synergy or dyssynergy. The purpose of this paper is to shed some light on what is synergy, how can we quantify and classify it and why acquiring firms tend to pay more for the target firm. We believe that there is a link between the amount of premium paid for a target firm and the expectations for synergy.http://stec.univ-ovidius.ro/html/anale/RO/2017-2/Section%20V/1.pdfsynergymergersacquisitionsdyssynergy |
| spellingShingle | Aevoae George Marian Premises and Limitations in Defining and Measuring Synergy from M&As Ovidius University Annals: Economic Sciences Series synergy mergers acquisitions dyssynergy |
| title | Premises and Limitations in Defining and Measuring Synergy from M&As |
| title_full | Premises and Limitations in Defining and Measuring Synergy from M&As |
| title_fullStr | Premises and Limitations in Defining and Measuring Synergy from M&As |
| title_full_unstemmed | Premises and Limitations in Defining and Measuring Synergy from M&As |
| title_short | Premises and Limitations in Defining and Measuring Synergy from M&As |
| title_sort | premises and limitations in defining and measuring synergy from m as |
| topic | synergy mergers acquisitions dyssynergy |
| url | http://stec.univ-ovidius.ro/html/anale/RO/2017-2/Section%20V/1.pdf |
| work_keys_str_mv | AT aevoaegeorgemarian premisesandlimitationsindefiningandmeasuringsynergyfrommas |