The factors driving the synergy value in mergers of mechanical engineering companies in the Czech Republic

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216305%3A26510%2F18%3APU128896" target="_blank" >RIV/00216305:26510/18:PU128896 - isvavai.cz</a>

Result on the web

<a href="http://www.jois.eu/index.php?459,en_the-factors-driving-the-synergy-value-in-mergers-of-mechanical-engineering-companies-in-the-czech-republic" target="_blank" >http://www.jois.eu/index.php?459,en_the-factors-driving-the-synergy-value-in-mergers-of-mechanical-engineering-companies-in-the-czech-republic</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.14254/2071-8330.2018/11-3/19" target="_blank" >10.14254/2071-8330.2018/11-3/19</a>

Result language

angličtina

Original language name

The factors driving the synergy value in mergers of mechanical engineering companies in the Czech Republic

Original language description

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.

Czech name

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Czech description

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Type

J_SC - Article in a specialist periodical, which is included in the SCOPUS database

CEP classification

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OECD FORD branch

50602 - Public administration

Project

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Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2018

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

JOURNAL OF INTERNATIONAL STUDIES

ISSN

2071-8330

e-ISSN

2306-3483

Volume of the periodical

11

Issue of the periodical within the volume

3

Country of publishing house

PL - POLAND

Number of pages

16

Pages from-to

239-254

UT code for WoS article

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EID of the result in the Scopus database

2-s2.0-85055592409