Mergers & Acquisitions: The Good, the Bad, and the Ugly (and how to tell them apart)

ARX Administrator    Richard Tortoriello, Temi Oyeniyi, CFA, David Pope, CFA, Paul Fruin, CFA, Ruben Falk
25 Mar 2017
Category: Corporate Finance

Country or region: Asia Pacific (Overall)

Summary:
This is a Quantamental Research published by S&P Global Market Intelligence in August 2016.


Abstract

Year-to-date through July, over $800 billion of merger-and-acquisition (M&A) activity has been announced in the U.S. Should acquiring-company shareholders expect to benefit? In this study we show that, among Russell 3000 firms with acquisitions greater than 5% of acquirer enterprise value, post-M&A acquirer returns have underperformed peers in general. A number of deal-related and fundamental attributes can be used to separate the ‘good’ from the ‘bad’ (and, sometimes, the really ugly).



Date of original publication:

08/01/2016


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