This thesis is concerned with acquisition activity in the UK and, specifically the prediction of takeovers. This is an important area for research for three reasons. Firstly, acquisition activity involves a small number of companies but creates very large sums of money. Secondly, acquisition activity can alter the composition of a company or an entire industry very rapidly making it a valuable tool for business. Lastly, there are many different topics within this field, allowing for a wealth of empirical analysis. A considerable amount of early research was limited to observation leaving some theories with little empirical backing. In addition, many earlier papers do not consider economic conditions. Recently the UK has experienced a boom and a recession. Both of these events may have effected acquisition activity and will be incorporated into this study. This thesis tackles several issues concerning acquisitions. Firstly, it deals with the level of acquisition activity and determines whether this behaviour is random or predictable. If it is predictable it should be possible to model this behaviour using appropriate indicators. The second issue is the prediction of takeovers identifying the companies likely to become involved in acquisitions. This study incorporates both accounting data and macro-economic factors. Finally, there is an analysis of acquisition benefits, considering the impact on share prices. The findings here suggest that the level of acquisition activity is predictable. However, in a boom it rises to an unprecedented level, demonstrating bubble-like properties. The empirical work concerning the prediction of acquisitions suggests that takeovers increase firm efficiency and remove poor managers. Furthermore, acquiring companies seek expansion and increased investment opportunities. Examining macro-economic conditions suggests funding and cash flow are important when acquiring in a boom, whilst productivity and market protection are vital in a recession. Finally, it appears that the target firm shareholders benefit irrespective of the outcome of the takeover.

The aim of this thesis is to identify the financial characteristics of takeover targets in UK for the period 1982-1990. An examination of the financial characteristics of the target firms may bring about an immediate recognition of the motives of takeover activity. The present study attempts to identify the financial characteristics of takeover target firms both at an economy wide level and at an industrial level. The thesis has been motivated primarily by the fact that there is no comprehensive study examining mergers and acquisitions in the UK in the 1980s and particularly within an industrial classification framework. The present thesis provides a comprehensive study of merger and acquisition activity for the UK over the period 1982-1990. The sample selected includes an initial population of 314 target firms, 603 bidder firms and a sample of 236 non- target firms matched by industry with the target firms. The basic methodology is logit analysis. The novelty of the economy wide study of mergers and acquisitions is as follows: the use of multivariate logit for a study of the UK, the separation of the data into distinct estimation (1982-1985) and validation (1986-1990) periods and the binomial choice problem is differentiated into bidders versus targets and non targets versus targets. The industry by industry study examines the following sectors: chemicals, construction, food, electrical and electronics engineering and mechanical engineering. The present thesis suggests that the financial characteristics of target firms vary between different industries.

Zugl.: Sankt Gallen, University, Diss., 2007.

Zugl.: Erlangen, Nürnberg, Univ., Diss., 2007

Diss. (sammanfattning) Stockholm : Stockholms universitet, 2005.

Heidelberg, Univ., Magisterarbeit, 2002. / Online publiziert: 2007.

FernUniversiẗat, Diss., 1994--Hagen.

Zugl.: Sankt Gallen, Univ., Diss., 2008

Zugl.: Kassel, Universiẗat, Diss., 2006. / Download lizenzpflichtig.

Hochsch. für Wirtschafts-, Rechts- und Sozialwiss., Diss.--St. Gallen, 1995.