Mergers and acquisitions (M&A) are one of the fastest strategic options that companies choose to face the global competitive market. This is evident from the number and the amount of growth in the value of the deals, as well as the occurrence of the 'mega–mergers' in recent times. If companies do not adapt to the fast moving and evolving business environment, they will run the risk of becoming obsolete. The key principle behind buying a company is to create shareholder value, which will give the organisation a competitive advantage. The reasoning behind M&A is that one combined company may be more valuable than two separate companies. Despite the popularity of M&A, 60–80% of M&A fail to create value. There are several reasons why M&A fail, such as the insufficient analysis and examination during the planning and early stages of the transaction, overpayment and poor management in the integration phase. In the past 20 years, the volume of cross–border acquisitions has increased nearly three times faster than the volume of domestic acquisitions. Although cross–border M&A have become more popular, it comes with its own challenges and problems. The companies that enter into cross–border acquisitions need to face the issue of cultural differences, which is one of the common reasons of M&A failure. The participants of both companies need to integrate with the national and corporate cultures of the new company. In order for companies to be successful, the management needs to consider the impact and importance of these cultural differences. Organisations frequently struggle with cross–cultural issues and it has been argued that the cultural distance between the country of the acquirer and the acquired is an important determinant of the success of cross–border acquisitions. In the example of the German company Daimler Benz and the American company Chrysler Corporation the fact that these two companies have very different cultural backgrounds and that their structures differed significantly complicated the merger. The company's choice of languages, images, metaphors and rhetorical strategies had a huge impact on the acceptance of the merger by the employees. Hofstede investigated the social dimensions of culture in order to develop a comprehensive model of culture. The model was developed on data collected from the IBM study of work–related attitudes of 116,000 employees in over 50 countries and three regions. The first four dimensions of culture were derived from this study namely, Power Distance Index (PDI), Individualism (IDV), Masculinity (MAS), and Uncertainty Avoidance Index (UAI). Gray extended Hofstede's earlier cultural framework to an accounting perspective and suggested that accounting values are derived from cultural dimensions. Gray summarised his accounting values as: Professionalism versus statutory control, uniformity versus flexibility, conservatism versus optimism and secrecy versus transparency. The research question and objective of this study was to investigate the potential impact of cultural differences of cross–border acquisitions on companies from an accounting perspective. In order to answer the research question there were three objectives set. The first objective is to investigate the impact that cultural differences have on a company using Hofstede's cultural dimensions, the second objective is to investigate the impact that cultural differences have towards an accounting perspective using Gray's accounting values. The third and final objective of this research is to interpret the potential impact of a cross–border acquisition on a company taking the cultural differences into account. Considering the cultural differences, it was evident that there are differences between cultures, which may lead to cultural conflict and may hamper the success of cross–border mergers or acquisitions. The cultural differences that were observed, which was extended to an accounting perspective indicated that cultures do have an effect on the way accounting is done form one country to another. The conclusion can be made that companies do need to take the cultural differences into account before entering into cross–border mergers and acquisitions, and that proactive measures needs to be in place in order for the cross–border merger and acquisition to be a success. / Thesis (M.Com. (Management Accountancy))--North-West University, Potchefstroom Campus, 2011.

Mergers and acquisitions (M&A) are one of the fastest strategic options that companies choose to face the global competitive market. This is evident from the number and the amount of growth in the value of the deals, as well as the occurrence of the 'mega–mergers' in recent times. If companies do not adapt to the fast moving and evolving business environment, they will run the risk of becoming obsolete. The key principle behind buying a company is to create shareholder value, which will give the organisation a competitive advantage. The reasoning behind M&A is that one combined company may be more valuable than two separate companies. Despite the popularity of M&A, 60–80% of M&A fail to create value. There are several reasons why M&A fail, such as the insufficient analysis and examination during the planning and early stages of the transaction, overpayment and poor management in the integration phase. In the past 20 years, the volume of cross–border acquisitions has increased nearly three times faster than the volume of domestic acquisitions. Although cross–border M&A have become more popular, it comes with its own challenges and problems. The companies that enter into cross–border acquisitions need to face the issue of cultural differences, which is one of the common reasons of M&A failure. The participants of both companies need to integrate with the national and corporate cultures of the new company. In order for companies to be successful, the management needs to consider the impact and importance of these cultural differences. Organisations frequently struggle with cross–cultural issues and it has been argued that the cultural distance between the country of the acquirer and the acquired is an important determinant of the success of cross–border acquisitions. In the example of the German company Daimler Benz and the American company Chrysler Corporation the fact that these two companies have very different cultural backgrounds and that their structures differed significantly complicated the merger. The company's choice of languages, images, metaphors and rhetorical strategies had a huge impact on the acceptance of the merger by the employees. Hofstede investigated the social dimensions of culture in order to develop a comprehensive model of culture. The model was developed on data collected from the IBM study of work–related attitudes of 116,000 employees in over 50 countries and three regions. The first four dimensions of culture were derived from this study namely, Power Distance Index (PDI), Individualism (IDV), Masculinity (MAS), and Uncertainty Avoidance Index (UAI). Gray extended Hofstede's earlier cultural framework to an accounting perspective and suggested that accounting values are derived from cultural dimensions. Gray summarised his accounting values as: Professionalism versus statutory control, uniformity versus flexibility, conservatism versus optimism and secrecy versus transparency. The research question and objective of this study was to investigate the potential impact of cultural differences of cross–border acquisitions on companies from an accounting perspective. In order to answer the research question there were three objectives set. The first objective is to investigate the impact that cultural differences have on a company using Hofstede's cultural dimensions, the second objective is to investigate the impact that cultural differences have towards an accounting perspective using Gray's accounting values. The third and final objective of this research is to interpret the potential impact of a cross–border acquisition on a company taking the cultural differences into account. Considering the cultural differences, it was evident that there are differences between cultures, which may lead to cultural conflict and may hamper the success of cross–border mergers or acquisitions. The cultural differences that were observed, which was extended to an accounting perspective indicated that cultures do have an effect on the way accounting is done form one country to another. The conclusion can be made that companies do need to take the cultural differences into account before entering into cross–border mergers and acquisitions, and that proactive measures needs to be in place in order for the cross–border merger and acquisition to be a success. / Thesis (M.Com. (Management Accountancy))--North-West University, Potchefstroom Campus, 2011.

abstract: This study investigates the performance effects of cross-industry mergers and acquisitions (M&A) using a sample of firms listed in China’s Growth Entrepreses Market (GEM). Compared to firms listed in the Shanghai and Shenzhen Stock Exchanges, firms listed in the GEM are much smaller and tend to derive the majority of their revenues from a single industry. I first analyze the motives for firms listed in the GEM to engage in M&As and propose a set of factors that may influence their likelihood of M&A activities. Using data on 55 cross-industry M&As between January 1, 2012 and December 31, 2016, I find that investor generally responded positively in short-term, as indicated by the positive accumulated abonormal returns over the first five trading days following the announcements. Meanwhile, I found no evidence that investors benefited from cross-industry M&As in long-term over three years after the event. Further analysis suggests that the short-term effects of cross-industry M&As by GEM listed firms were influenced by the target firm’s market valuation, whether the M&A was paid by cash, the amount of the payment, and the degree of difference between the acquiring firm’s and the target firm’s industries. These findings have important implications for the investors and senior executives of firms listed in the GEM. / Dissertation/Thesis / Doctoral Dissertation Business Administration 2018

La reprise des opérations de rapprochements entre des groupes bancaires européens a suscité un questionnement quant aux justifications d’un mouvement vers une consolidation bancaire paneuropéenne. Cette recherche s’inscrit dans le cadre des essais d’analyse des logiques des fusions et acquisitions (F&A) bancaires paneuropéennes en examinant la pertinence des arguments de l’analyse traditionnelle de ce processus. Dans une perspective de renouvellement des concepts d’analyse de ces stratégies bancaires, les sources classiques de création de valeur sont remises en cause, particulièrement, dans le cas des fusions et des acquisitions bancaires paneuropéennes. Cette critique est au cœur de notre problématique. Nous cherchons, dès lors, à mieux appréhender la logique des fusions bancaires transfrontalières dans l’UE en prenant en considération les spécificités de ces opérations et l’évolution du cadre conceptuel des approches d’analyse des métiers de la banque. Nous proposons une grille d’analyse des déterminants de F&A transfrontalières dans l’UE qui permet de focaliser les analyses sur deux principaux critères en faisant référence à leurs cadres théoriques respectifs. Le premier critère d’analyse de ces stratégies bancaires concerne l’aspect géographique relatif aux marchés d’expansion transnationale. Le deuxième critère est lié à la nature des métiers bancaires des parties engagées dans une opération de F&A transfrontalière. L’idée est d’évaluer la pertinence des stratégies de diversification des activités bancaires et de type géographique dans le cas européen. L’apport de notre étude est de valider cette grille en adoptant trois approches différentes. Dans un premier lieu, nous proposons d’appliquer cette grille au cas européen dans le cadre d’une approche analytique des deux critères à la fois. Ensuite, nous voudrions évaluer empiriquement le cadre théorique de chaque critère d’analyse des raisons des F&A transfrontalières des banques de l’UE, séparément, en envisageant deux essais empiriques. Dans un premier essai, nous analysons les déterminants d’une activité de consolidation bancaire paneuropéenne selon une approche macroéconomique. L’idée principale est d'identifier certains pays et leurs caractéristiques qui affecteront la tendance des F&A transfrontalières bancaires dans l’UE. Cette identification nous permet de vérifier les hypothèses d’internationalisation dans le cas européen. Dans le second essai, nous évaluons empiriquement la pertinence des arguments de performance en envisageant une analyse microéconomique des logiques stratégiques des F&A transfrontalières sur un échantillon des principales banques de l’UE. Nos essais empiriques permettent de mettre en évidence les deux critères d’analyse des raisons des F&A transfrontalières et paneuropéennes tout en prenant en considération leurs logiques stratégiques de diversification. / Considering the acceleration in the process of European banking integration, an important concern arises about the driving forces behind the current banking consolidation wave in Europe in the context of international banking expansion. This dissertation spans the fields of the literature on banking internationalisation and cross-border M&A to consider the specific features of these strategies considering the explanations provided by the traditional analysis of banking consolidation. In prospect of proposing new concepts to analyse the patterns of cross-border banking activities in European Union, we identify other vectors in international banking business that create value for shareholders besides economies of scale, with regard to the difficulties to generate cost cuttings in the case of transnational deals. We suggest focusing the analyses of the determinants of cross-border banking mergers and acquisitions (M&As) in the European Union that will allow focusing the analyses on two main criteria regarding their respective theoretical framework. The first criterion of analyzing cross-border banking M&As is related to characteristics of market expansion. The second criterion is linked to the features of cross-border banking activities. These criteria are identified as the variables that affect the banking internationalization. The purpose is to assess the validity of strategic arguments of diversification as the determinants of cross-border banking M&As in Europe. This approach allows us to validate our proposal criteria using three different approaches. First, we provide empirical evidence about both criteria by considering analyses banking structures and characteristics of banking activities in Europe. Then we examine macroeconomic determinants of cross-border banking activities in European countries. We identify receiving and investing countries of cross-border banking investments in Europe, considering the characteristics of countries. Our results allow us to test if the arguments of banking internationalization theories will be sufficient to explain the pan European consolidation. On the other hand, we analyze the strategic motivations of cross-border banking M&As and performance arguments of these transactions by considering a microeconomic analysis on a sample of major banks in the European Union. We provide empirical evidence on theoretical framework of each analysis criterion of cross-border banking M&A in the EU considering their strategic motivations.

The focus of this doctoral research is on advancing knowledge of what managers can do to address the issues of corporate cultural differences in mergers and acquisitions (M&A). Despite decades of experience, the rate of M&A failure remains high globally. The root causes of these failures have pointed to inadequate strategic deal theses, excessive purchase prices paid, and poor pre- and post-integration management. Human and cultural factors have also been blamed for these failures. Significant research effort has been expended in raising the importance of human factors and the issue of culture fit in M&A. However, research results have remained ambiguous. Extant organisational M&A culture research has largely focused on examining the role of culture in M&A and its impact on M&A performance. How to address organisational culture differences in M&A is much less studied. Only a small handful of scholars, consultants and practitioners have attempted to prescribe corporate culture alignment guidelines that are either too generic or prescriptive. Managers remain unclear as to how to manage cultural differences in M&A.The research sets out to address how managers can effectively moderate the effects of corporate cultural differences on M&A performance in domestic M&A. It aims to develop a practical M&A corporate culture alignment model for managers tasked with addressing the effects of corporate cultural differences in M&A. It also focuses on addressing the issues of single-layered acculturation of corporate cultures in isolation from the perplexing issues of double-layered acculturation between national and corporate cultures in cross-border transactions. The researcher adopted a qualitative case study research method to deliver on the research objectives within the doctoral research timeframe. He selected a sample of four domestic M&A case studies in Thailand where he is located. Each case study was free of issues related to national cultural differences. The researcher was able to draw rich information and insights from interviewing a total of 50 senior executives, middle managers and staff across case studies. The main research findings provide managers with an improved understanding of the roles of corporate culture on M&A performance and a practical and repeatable five-phase M&A corporate culture alignment model (‘5-D’). The model offers a planned step-by-step change approach, key objectives, and suggested tools and templates that help guide managers to effectively moderate the effects of corporate culture differences in domestic M&A from pre-to post-M&A stages. The model also provides strategic choices and implementation guidelines for managers to consider in addressing the emergent nature of acculturation and change in M&A integration situations. The effectiveness of this exploratory model shall be further tested in future qualitative and quantitative studies. The empirical testing of the research recommendations has already begun with a number of recent M&A projects in Asia outside of this research.

One of the main goals of the company is to ensure its development. The development can be achieved by many options - for example an acquisitions or a merger as the way of cooperation. The strategic decision-making and the post evaluation are important parts that need to be taken into account. This diploma thesis analysis the evolution of Helika company after entering the foreign partner. The evolution has been involved by the depression and its impacts on the industry. Through financial analysis is compared with the development of the business sector and its competitors across the market. The conclusion of the thesis is evaluation whether the decision of entering the foreign partner was suitable act and whether the company achieved to required effects.

Whether mergers and acquisitions create or destroy shareholder value for acquiring companies has been widely researched and remains fairly inconclusive. The purpose of this research was to study the short term and long term impacts of large acquisitions on the share price performance of acquiring companies using the event study methodology.From a population of 11 062 acquisitions made by JSE listed companies between 1999 and 2008, 39 acquisitions met the relevant criteria of non-occurrence of confounding events and the availability of information. The Cumulative Abnormal Returns of acquiring companies over a short term period surrounding the announcement date and the longer term post-announcement date period were tested to observe whether they were significantly different to zero.Whilst statistically significant Cumulative Abnormal Returns were observed over the short term 3-day event window [-1;+1], no statistically significant Cumulative Abnormal Returns were observed around the remaining five event windows. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

Mergers and acquisitions (M&As) are an ubiquitous feature of modern corporate landscape. Most are entered into for various synergistic (voluntary) reasons whilst some, such as broad-based black economic empowerment (BBBEE) M&As, are driven largely by legislative requirements. Research has shown that the factors that lead to the success or failure of voluntary M&As are many and complex.Whilst there is a plethora of literature regarding the success factors for voluntary M&As, there is, however, a paucity of academic literature on the qualitative factors that lead to the success or failure of BBBEE M&As, despite quantitative studies showing the benefits of BBBEE M&As. Because of the significance of BBBEE to the economic development of the country, policy makers, academics and business people need to fully understand such factors.Given the dearth of academic literature on the subject, a qualitative, exploratory study conducted by way of face to face, expert, semi-structured interviews, was undertaken to answer the research problem.The study found that whilst BBBEE M&As are similar, in some respects, to voluntary M&As, BBBEE M&As require different or additional success factors to those applicable to voluntary M&As. Some of these are: funding structure, transaction rationale, expectations‟ alignment, clear deliverables, active governance, operational involvement, relationship management, transformation and social investment. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

Special Purpose Acquisition Companies (SPACs) are public shell entities uniquely constructed to acquire one or more privately held businesses. The transaction's structural characteristics put significant pressure on the management team's capabilities to find a suitable company to acquire within the predetermined time frame. This thesis investigates whether management team characteristics, such as operating experience and gender diversity, increases the likelihood of success in identifying the target company and conducting the merger. Although not statistically significant, the results indicate that SPACs led by “C-suite” operators do not have a higher likelihood of successfully consummating a business combination. Furthermore, our data indicates gender diversity to have a positive impact on acquisition likelihood. / Special Purpose Acquisition Companies (SPACs) är publika skalbolag konstruerade enkom i syfte att förvärva ett eller flera privata bolag. Transaktionen lägger stor vikt på ledningens förmåga att identifiera och förvärva en eller flera verksamheter inom en förbestämd tidsram. Studien undersöker huruvida relevanta karaktärsdrag i ledningsgruppen, såsom operationell erfarenhet och skillnader i kön, ökar sannolikheten att identifiera och förvärva dessa bolag. Resultatet av studien påvisar inget samband mellan operationell erfarenhet och ökad sannolikhet för förvärv, men däremot visar sig skillnader i kön inom ledningsgruppen ha en positiv inverkan på sannolikheten för förvärv. Sammantaget är resultaten dock inte statistiskt signifikanta.

This thesis examines the link between mergers and acquisitions (M&As) and corporate financial leverage. The thesis proposes and tests various hypotheses regarding: (1) the relationship between the probability of firms undertaking M&As and corporate financial leverage; and (2) the changes in financial leverage prior to firms' decision to initiate M&As. The empirical evidence on the proposed hypotheses is based on a large sample of firms in the UK during the period 1996 and 2006. The empirical analysis presented in this study contributes to the large and growing body of literature on the interdependence of corporate financing and investment decisions. Specifically, this study contributes to the literature in two ways. First, the thesis investigates the link between firms leverage deviations (i.e. the deviations of firms observed leverage ratios from target leverage ratios) and the probability of undertaking M&As in the future. Building upon the earlier literature, it is argued that extreme leverage deviations lower the probability of undertaking M&As by impairing firms ability to raise capital to finance these deals. The study s empirical analyses suggest that extremely overleveraged firms have lower probability of undertaking M&As. Moreover, the link between extreme overleverage and the probability of undertaking M&As is weaker for diversification-increasing acquisitions (i.e. deals in which the acquirer and the target firm operate in different industries); for domestic acquisitions (i.e. deals in which the acquirer and the target firm are domiciled in the same country); and for focused (i.e. single-segment) firms undertaking acquisitions. Thus, the leverage deviation effect is not symmetric for all types of acquisitions and for all firms. Second, the thesis examines how the pre-acquisition changes in corporate financial leverage may be influenced by: (1) the extent to which firms deviate from their target leverage ratios; and (2) firms intentions to initiate M&As. Key empirical findings in this section suggest that firms that have higher leverage deviations adjust their leverage at a higher rate than those with lower deviations. More importantly, the empirical evidence suggests that firms that undertake M&As adjust their pre-acquisition leverage at a higher rate than those that do not. These findings suggest that, when making adjustments to corporate capital structure, managers tend to consider their firms leverage deviations and their future acquisition plans. Furthermore, the study s findings partly explain the differences in the speeds of financial leverage adjustments reported in the existing literature.