Value creation in bundling utility mergers: A corporate focus anomaly

Burns, Richard M.; Erwin, Gayle R.; Messina, Frank; Nail, Lance

doi:10.1016/s1085-7443(99)80074-x

Cited by 3 publications

(3 citation statements)

References 15 publications

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“…Again, the results are mixed for the energy market. While Bacon et al (1997) and Burns et al (1998) observe an increase in performance after a merger, Khurana andPereira (2002), Becker-Blease et al (2008), as well as Ramos-Real et al (2010) find decreases in the post-merger operating performance.…”

Section: Introductionmentioning

confidence: 97%

“…Management synergies are a further possible motivation, where the superior management skills of the buying firm can be applied to the takeover target (Jensen, 1993;Gaughan, 2002). A number of studies of energy utilities in the US contain indications that the efficiency of energy utilities could indeed be increased as a result of takeovers (Bacon, 1997;Burns et al 1998;Kwoka, 2006;Fabrizio et al, 2007).…”

Section: Introductionmentioning

confidence: 99%

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Market power consolidation and M&A success: A study of US-American and German utility takeovers

Fraunhoffer

Freytag

Schiereck

2013

JEFS

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1. Mergers and acquisitions (M&A) during the latest takeover wave between US-American utility firms did not lead to increased market power. 2. Nevertheless, market value of merging entities appreciated on the day of the transaction. 3. In contrast, in Germany the overall market power in the utility sector increased as a result of national mergers, particularly during horizontal transactions. 4. Thus, the diverging regulation mechanisms and market structure of Germany and the US apparently influences the effect of national M&A in the utility sector.

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Section: Introductionmentioning

confidence: 97%

Section: Introductionmentioning

confidence: 99%

Market power consolidation and M&A success: A study of US-American and German utility takeovers

Fraunhoffer

Freytag

Schiereck

2013

JEFS

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“…When cash flow is constant, value of enterprise is inversely proportional to risk. Value of enterprise is equal to present value of future cash flow plus present value of terminal value minus remanent debt in DCF theory [7]- [8] . The theory is based on three hypotheses as follows:…”

Section: Introductionmentioning

confidence: 99%

Improvement of Discounted Cash Flow Theory in Mergers and Acquisitions Based on Games

Liu

2009

2009 International Conference on Electronic Commerce and Business Intelligence

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The result of value appraisal decides whether an enterprise acquires target or not. Discounted Cash Flow is a theoretical, widely applied method of value appraisal. However, it predicts cash flow by linear model, static appraisal and ignores integration cost. This paper tries to amend the flaws through combining games and Discounted Cash Flow method, considering integration cost. The amendment optimizes Discounted Cash Flow method, increases its practicability and science. Its improvement is available to reduce the risk of value appraisal and complete integration successfully.

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Study on flaws and improvement of discounted cash flow theory in mergers and acquisitions

Liu

2008

2008 4th IEEE International Conference on Management of Innovation and Technology

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Value creation in bundling utility mergers: A corporate focus anomaly

Cited by 3 publications

References 15 publications

Market power consolidation and M&A success: A study of US-American and German utility takeovers

Market power consolidation and M&A success: A study of US-American and German utility takeovers

Improvement of Discounted Cash Flow Theory in Mergers and Acquisitions Based on Games

Study on flaws and improvement of discounted cash flow theory in mergers and acquisitions

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