The intelligent clean room: ensuring value capture in mergers and acquisitions

Abstract

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“…However, some of the researchers such as Chanmugam et al (2005); Kursten (2008);MacDonald (2005) do not support that view that M&As can result in short-term gain for shareholders. Nevertheless, researchers like Dutordoir et al (2014) and Singla et al (2012) argue that there are several variables that contribute in the creation of shareholders value as a result of mergers and acquisition deals both in the short and long-term scenarios.…”

“…two years after the acquisition. Secondly, Chanmugam et al (2005) explain that the non-value creation of mergers/acquisitions can be contributable to the relative mature process of M&As as every company uses identical process to undertake M&As activities that often lead to overestimating the potential synergies that in turn leads to financial losses rather than gain. As evident by the prevalent literature that during implemental or integration phase most of the M&As cost increases as a result of complex structural and cultural issues.…”

“…They further argue that the absence of abnormal return through M&A can be contributable to the competitive nature of UK's market where any new information is being quickly incorporated in the security price. However, contrary to this, Chanmugam et al (2005) by writing an investigative article to measure the performance of 350 post-merger integration engagement aimed at determining common grounds for successful M&A, argue that the entire M&A process hardly create value for shareholders because the valuation process for any potential M&A has become much more familiar as it (M&A) leads to almost similar synergies and therefore the market does not react abnormally. However, they argue that value creation can still be achieved by focusing on several areas i.e.…”

“…Nevertheless, value creation as a result of mergers and acquisition still remains an intriguing area as several research findings such as Chanmugam et al (2005); Kursten (2008);MacDonald (2005) support the idea that most of M&A deals benefit executives rather than shareholders. However, yet substantial research findings support the idea of value creation for shareholders as a result of mergers and acquisition.…”

Şi̇rket Bi̇rleşmeleri̇ Ve Satin Almalarda Kri̇ti̇k Başari Faktörleri̇: Türki̇ye Pazari Bağlaminda Bi̇r Değerlendi̇rme

“…Achieving access to additional resources is not the sole role of merger and acquisition; Chanmugam et al, (2005) states that postmerger integration of two organizations should yield value creation, while McDonald et al, (2005) states that the continued pressure for mergers and acquisitions is the result of stakeholders pursuit of increased shareholder value. Under literature an additional term employed for this value creation is "Synergy".…”