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An Analysis of M&A Activity in the European SME Market and Value Drivers of Post-Merger Performance

Hutchinson, Callum LU and Beckmann, Lukas LU (2020) NEKN02 20201
Department of Economics
Abstract
Abstract
This thesis investigates the impacts pre-merger characteristics play in long-term post-merger performance from a sample of small and medium sized enterprises whom conducted M&A activity within the European Union between the time period of 2011-2013. Using data collected, a quantitative analysis was performed to measure the impact of six separate factors on post-merger performance analyzing the abnormal ROA through the inclusion of pre-merger performance as a control variable. Overall, our results concluded that SMEs behave differently when engaging in M&A than their larger counterparts. Our analysis found that both previous M&A experience and cross-border transactions negatively impact performance, whilst we found no empirical... (More)
Abstract
This thesis investigates the impacts pre-merger characteristics play in long-term post-merger performance from a sample of small and medium sized enterprises whom conducted M&A activity within the European Union between the time period of 2011-2013. Using data collected, a quantitative analysis was performed to measure the impact of six separate factors on post-merger performance analyzing the abnormal ROA through the inclusion of pre-merger performance as a control variable. Overall, our results concluded that SMEs behave differently when engaging in M&A than their larger counterparts. Our analysis found that both previous M&A experience and cross-border transactions negatively impact performance, whilst we found no empirical evidence to support firm size, liquidity or cross-industry mergers to have a significant impact on long-term post-merger performance. (Less)
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author
Hutchinson, Callum LU and Beckmann, Lukas LU
supervisor
organization
course
NEKN02 20201
year
type
H1 - Master's Degree (One Year)
subject
keywords
Mergers and Acquisitions, SMEs, M&A Performance, Europe, M&A Success Factors
language
English
id
9017951
date added to LUP
2020-08-29 11:18:03
date last changed
2020-08-29 11:18:03
@misc{9017951,
  abstract     = {{Abstract
This thesis investigates the impacts pre-merger characteristics play in long-term post-merger performance from a sample of small and medium sized enterprises whom conducted M&A activity within the European Union between the time period of 2011-2013. Using data collected, a quantitative analysis was performed to measure the impact of six separate factors on post-merger performance analyzing the abnormal ROA through the inclusion of pre-merger performance as a control variable. Overall, our results concluded that SMEs behave differently when engaging in M&A than their larger counterparts. Our analysis found that both previous M&A experience and cross-border transactions negatively impact performance, whilst we found no empirical evidence to support firm size, liquidity or cross-industry mergers to have a significant impact on long-term post-merger performance.}},
  author       = {{Hutchinson, Callum and Beckmann, Lukas}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{An Analysis of M&A Activity in the European SME Market and Value Drivers of Post-Merger Performance}},
  year         = {{2020}},
}