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2018 | 11 | nr 3 | 239--254
Tytuł artykułu

The Factors Driving The Synergy Value In Mergers of Mechanical Engineering Companies in the Czech Republic

Treść / Zawartość
Warianty tytułu
Języki publikacji
EN
Abstrakty
EN
Research into factors that influence the outcome of mergers and acquisitions conducted over a few past decades focused on two areas, one being the forecasting of the volume of expected investments, the other investigating M&A efficiency, i.e. the search for the factors that drive the growth of value of combined firms (identification of the sources of synergy). Operating synergies, resulting from cost savings and investment reduction, are deemed the primary source of synergy. Determining the synergy value is a prerequisite for identifying sources of savings. This paper presents the results of research aimed at determining the synergy value and identifying the factors representing potential sources of synergy. The discounted capital cash flow method was used to determine the synergy value. In the set of 50 mergers carried out between 2004 and 2011 that we investigated, we found that a negative synergy effect developed at an average level of 8.13%. This means that most of these mergers were not associated with additional profits for the owners. The correlation between the selected financial ratios and the synergy value was tested. The results show that there is a statistically significant relationship between the indicators based on cash flow and the synergy value. (original abstract)
Rocznik
Tom
11
Numer
Strony
239--254
Opis fizyczny
Twórcy
  • Brno University of Technology, Czech Republic
autor
  • Brno University of Technology, Czech Republic
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Typ dokumentu
Bibliografia
Identyfikatory
Identyfikator YADDA
bwmeta1.element.ekon-element-000171526763

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