Mergers and Acquisitions (M&A), are they an effective approach to value creation?
This article is about:
• M&A success rate
• Trends in top companies
• Traditional M&A versus Strategic M&A
• Strategic M&A for Service Business
• How Strategic M&A can enhance your Corporate Value
The main purpose of M&A is to add value to shareholders, based on the assumption that to merge or make an acquisition will produce higher corporate potential value than the value of the two separate companies.
The logic is quite simple: Companies can 
benefit from combining the two companies in fixed cost reduction available from economies of scale. Most examples involve purchase of a competitor; or companies in similar core activities, however, evidence from different source, highlights that only one in three M&A deals achieves the expected increased corporate value. Recent research reveals results were even worse in Europe: in the last three years, less than one in ten transactions can be considered successful.
benefit from combining the two companies in fixed cost reduction available from economies of scale. Most examples involve purchase of a competitor; or companies in similar core activities, however, evidence from different source, highlights that only one in three M&A deals achieves the expected increased corporate value. Recent research reveals results were even worse in Europe: in the last three years, less than one in ten transactions can be considered successful. Login to read the full article
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