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Cumulative Wisdom or Compounding Complexity: The learning curve among serial acquirers. (Sweden)

Broman, Filip LU and Sehlberg, Alexander LU (2024) NEKN02 20241
Department of Economics
Abstract (Swedish)
This thesis investigates the performance dynamics of serial acquirers in the Swedish market, specifically focusing on their ability to realize cost synergies over time. Through an empirical analysis of Swedish firms engaging in mergers and acquisitions (M&A) between 2010 and 2019, we aimed to determine whether serial acquirers exhibit improved synergy realization in subsequent acquisitions compared to their initial ones, and how their performance contrasts with single acquirers. Our methodology employs event studies and regression analyses to subsequently evaluate cost-saving outcomes and operational efficiency post-acquisition, using the financial metrics Gross Profit margin and EBITDA margin. Our findings suggest that serial acquirers do... (More)
This thesis investigates the performance dynamics of serial acquirers in the Swedish market, specifically focusing on their ability to realize cost synergies over time. Through an empirical analysis of Swedish firms engaging in mergers and acquisitions (M&A) between 2010 and 2019, we aimed to determine whether serial acquirers exhibit improved synergy realization in subsequent acquisitions compared to their initial ones, and how their performance contrasts with single acquirers. Our methodology employs event studies and regression analyses to subsequently evaluate cost-saving outcomes and operational efficiency post-acquisition, using the financial metrics Gross Profit margin and EBITDA margin. Our findings suggest that serial acquirers do not outperform single acquirers in terms of abnormal EBITDA margins and abnormal Gross Profit margins, if something serial acquirers in our sample appear to underperform compared to single acquirers. However, we found that specific factors such as industry type, deal size, and payment method could significantly influence the outcomes. The research contributes to the M&A literature by providing nuanced insights into the Swedish market and challenging the assumption that experience in multiple acquisitions inherently leads to better performance. These results have implications for refining existing models and guiding future research on the strategic management of serial acquirers. (Less)
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author
Broman, Filip LU and Sehlberg, Alexander LU
supervisor
organization
course
NEKN02 20241
year
type
H1 - Master's Degree (One Year)
subject
keywords
Mergers and Acquisitions, Serial Acquirers, Economies of Scope and Scale, Hubris and Learning Hypothesis, Cost Synergies.
language
English
id
9161380
date added to LUP
2024-08-12 15:55:06
date last changed
2024-08-12 15:55:06
@misc{9161380,
  abstract     = {{This thesis investigates the performance dynamics of serial acquirers in the Swedish market, specifically focusing on their ability to realize cost synergies over time. Through an empirical analysis of Swedish firms engaging in mergers and acquisitions (M&A) between 2010 and 2019, we aimed to determine whether serial acquirers exhibit improved synergy realization in subsequent acquisitions compared to their initial ones, and how their performance contrasts with single acquirers. Our methodology employs event studies and regression analyses to subsequently evaluate cost-saving outcomes and operational efficiency post-acquisition, using the financial metrics Gross Profit margin and EBITDA margin. Our findings suggest that serial acquirers do not outperform single acquirers in terms of abnormal EBITDA margins and abnormal Gross Profit margins, if something serial acquirers in our sample appear to underperform compared to single acquirers. However, we found that specific factors such as industry type, deal size, and payment method could significantly influence the outcomes. The research contributes to the M&A literature by providing nuanced insights into the Swedish market and challenging the assumption that experience in multiple acquisitions inherently leads to better performance. These results have implications for refining existing models and guiding future research on the strategic management of serial acquirers.}},
  author       = {{Broman, Filip and Sehlberg, Alexander}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Cumulative Wisdom or Compounding Complexity: The learning curve among serial acquirers. (Sweden)}},
  year         = {{2024}},
}