Showing articles with tag: synergies
Do Private Equity Firms Pay for Synergies?
It is a commonly accepted view that strategic acquirers incorporate synergistic value into their bids for targets, while private equity (PE) funds presumably do not because they lack operating similarities with the portfolio firm. Empirical evidence provides some support for this view but is limited to PE bids in so-called…
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Management Practices and Mergers and Acquisitions
A fundamental question in corporate finance is how mergers and acquisitions create value? Value creation could arise from many sources, including economies of scale or scope, increases in managerial efficiency, improvements in production techniques, or increases in market power. However, while synergies are the leading motive behind mergers, direct empirical…
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