Assessment of the Performance of Mergers: Revisiting Results after a Prolonged Period
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216305%3A26510%2F21%3APU139322" target="_blank" >RIV/00216305:26510/21:PU139322 - isvavai.cz</a>
Result on the web
<a href="https://www.shs-conferences.org/articles/shsconf/abs/2021/03/shsconf_glob20_07048/shsconf_glob20_07047.html" target="_blank" >https://www.shs-conferences.org/articles/shsconf/abs/2021/03/shsconf_glob20_07048/shsconf_glob20_07047.html</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1051/shsconf/20219207047" target="_blank" >10.1051/shsconf/20219207047</a>
Alternative languages
Result language
angličtina
Original language name
Assessment of the Performance of Mergers: Revisiting Results after a Prolonged Period
Original language description
Research background: Mergers and acquisitions (M&As) have become a widespread tool for business growth strategy. Considering the developments after the previous financial crisis, a fresh wave of M&As is expected to appear in the near future. Investors will look for suitable businesses to consolidate their market position. Purpose of the article: The aim of this work is to assess the performance of completed mergers over a period of five years and compare the results with previous research in which we examined the success of mergers over a threeyear period. Our goal was to find out if any differences in performance indicators occur and if these differences are significant. The results may offer potential indicators of merger success rate prediction. Methods: We focused our research on mergers of private companies (i.e. not publicly traded companies) in the Czech Republic. Our research sample contained 50 completed mergers. The mergers were divided into two groups – successful and unsuccessful – according to the sales and profit of the merged company. We calculated financial indicators for each group based on accounting data. We then used the Mann-Whitney U test to test the significance of the differences between the indicator values. Findings & value added: Several important performance indicators emerged. The most significant included production consumption to sales, the material cost to sales, receivables to sales, assets turnover and profitability ratios. The ratio labour cost to sales was replaced with the ratio value added to labour cost. Our research concludes that these indicators can be considered crucial.
Czech name
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Czech description
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Classification
Type
D - Article in proceedings
CEP classification
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OECD FORD branch
50206 - Finance
Result continuities
Project
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Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2021
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
The 20th International Scientific Conference Globalization and its Socio-Economic Consequences 2020
ISBN
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ISSN
2261-2424
e-ISSN
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Number of pages
10
Pages from-to
1-10
Publisher name
EDP Sciences
Place of publication
Žilina
Event location
Žilina, SK
Event date
Oct 21, 2020
Type of event by nationality
EUR - Evropská akce
UT code for WoS article
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