The Determinants of M&A Success
The Determinants of M&A Success analyzes over 500 global deals announced between January 1, 2000 and December 31, 2004. The study made several interesting findings including the fact that for this period of time, there was a positive correlation between merger activity and increasing shareholder value. The factors that were most strongly correlated with success were deals that were financed solely with cash and those with low P/E ratios. In addition, deals that were motivated by financial considerations were strongly correlated with higher stock prices.
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