Assessment of the Performance of Mergers: Revisiting Results after a Prolonged Period

Kód výsledku v 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>

Výsledek na webu

<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>

Jazyk výsledku

angličtina

Název v původním jazyce

Assessment of the Performance of Mergers: Revisiting Results after a Prolonged Period

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

Assessment of the Performance of Mergers: Revisiting Results after a Prolonged Period

Popis výsledku anglicky

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.

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

50206 - Finance

Projekt

—

Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2021

Kód důvěrnosti údajů

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

Název statě ve sborníku

The 20th International Scientific Conference Globalization and its Socio-Economic Consequences 2020

ISBN

—

ISSN

2261-2424

e-ISSN

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Počet stran výsledku

10

Strana od-do

1-10

Název nakladatele

EDP Sciences

Místo vydání

Žilina

Místo konání akce

Žilina, SK

Datum konání akce

21. 10. 2020

Typ akce podle státní příslušnosti

EUR - Evropská akce

Kód UT WoS článku

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