A financial survey of mergers during the years 1968–70

Dale, PM

doi:10.1016/0305-0483(73)90107-2

Cited by 2 publications

(3 citation statements)

References 4 publications

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“…Firms can obtain operational as well as financial benefits as a result of acquisition. Dale (1973) suggested five primary rationales of growth by acquisitions, which include lengthening the product line, gaining shares in a market not previously supplied, enlarging a firm"s capacity to supply old markets, diversifying interests and acquiring access to further processing or distribution facilities. Dale (1973) also further propounds that generally purely financial gains merely accompany an acquisition and are not a reason for affecting it.…”

Section: Introductionmentioning

confidence: 99%

“…Dale (1973) suggested five primary rationales of growth by acquisitions, which include lengthening the product line, gaining shares in a market not previously supplied, enlarging a firm"s capacity to supply old markets, diversifying interests and acquiring access to further processing or distribution facilities. Dale (1973) also further propounds that generally purely financial gains merely accompany an acquisition and are not a reason for affecting it. The shareholder"s wealth maximization theory requires that a take-over or merger lead to increased profitability for the bidders as well as the target firms in order for the merger and take-over to be justified, notable from synergy; either from financial, operation or managerial synergy.…”

Section: Introductionmentioning

confidence: 99%

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Impact Of Merger And Acquisition On Debt Management Ratio: A Case Study In Malaysian Banking Sectors

Talha

Sallehhuddin

2011

IBER

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This study based on efficiency theory of shareholders wealth maximization of acquisition principle attempted to investigate the debt management ratio of ten Malaysian anchor banks after undergoing mega merger and acquisition program which was completed in the year of 2000. As efficiency theory consists of three elements that are financial synergy, operation synergy and managerial synergy, the study will primarily focus its analysis on financial synergy (debt management). Using accounting technique (financial statement analysis) to draw the implication, the study results highlighted the performance of those anchor banks from the year 2000 to 2004. The ratio analysis tools employed covered total liabilities to total assets, total liabilities to total equity, times interest earned, and cash debt coverage ratio. The findings shows that in general, the anchor banks recorded improvement in term of debt management; yet more comprehensive strategies have to be executed to further enhance the financial synergy. The generalization however shall be done in more cautious as the study inherits several limitations including the application of financial statement which based on historic cost rather than reflecting the current market situation. The study perhaps can be extended to include the analysis of earnings performance ratios and market/investor perception toward the resilience of those anchor banks after completing the merger and acquisition mega program.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Impact Of Merger And Acquisition On Debt Management Ratio: A Case Study In Malaysian Banking Sectors

Talha

Sallehhuddin

2011

IBER

View full text Add to dashboard Cite

show abstract

“…Firms can obtain operational as well as financial benefits attributed to acquisition. Dale (1973) uses five main rationales of gro\\1h by acquisition, which include lengthening the product line, gaining shares in a market not previously supplied, enlarging a firm's capacity to supply old markets, diversifying interests and acquiring access to further process or distribution facilities. According to Dale, generally purely financial gains are merely accompanied by an acquisition and are not a reason for affecting it.…”

Section: Introductionmentioning

confidence: 99%

Post Performance of Malaysian Acquired Firms: A Preliminary Study

Nor¹,

Ramlee²

1995

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11This study uses accounting based measures to draw implication regarding the performance of the acquired firms. The results are reported based on the average of the five years before and after the takeover. This study has shown that the acquisition of public listed companies did not result in improvement in the earning performance after the takeover. In contrast to the actual performance of the companies. the investor S perception on the value of the target increased. The decline in earning performance ratio could be explained by the fact that all the takeovers sample except one are of a conglomerate type. Secondly. most of these acquisitions have been financed by the issue of shares by the bidder to the target s shareholders. resulting in dilution on earning performance. ABSTRAK Objektif kajian adalah untuk melihat ukuran yang berasaskan perakaunan supaya rumusan boleh dibuat mengenai prestasi firma yang lelah diambilalih. Keputusan dilaporkan berasaskan purata 5 lahun sebelum dan selepas diamhilalih. Kajian ini menunjukkan pengambilalihan syarikat tersenarai tidak meningkatkan prestasi perolehannya setelah diambilalih. Berlainan dengan prestosi sebenar syarikat. pelabur-pelabur bertanggapan peningkatan nilai pada syarikat sasaran. Penurunan nisbah prestasi perolehan boleh diterangkan oleh sampel syarikat sasaran yang kesemuanya kecuali satu merupakan jenis syarikat konglomerat. Kedua. kesemua pengambilan dibiayai mela/ui pemberian saham oleh syarikat penawar kepada pemegang saham syarikat sasaran menyebabkan kecairan prestasi perolehannya.

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A financial survey of mergers during the years 1968–70

Cited by 2 publications

References 4 publications

Impact Of Merger And Acquisition On Debt Management Ratio: A Case Study In Malaysian Banking Sectors

Impact Of Merger And Acquisition On Debt Management Ratio: A Case Study In Malaysian Banking Sectors

Post Performance of Malaysian Acquired Firms: A Preliminary Study

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