A Risk Management Model for Merger and Acquisitio

In this paper, a merger and acquisition risk management model is proposed for considering risk factors in the merger and acquisition activities. The proposed model aims to maximize the probability of success in merger and acquisition activities by managing and reducing the associated risks. The modeling of the proposed merger and acquisition risk management model is described and illustrated in this paper. The illustration result shows that the proposed model can help to screen the best target company with minimum associated risks in the merger and acquisition activity

Managing M&A-From Strategic Intent to Integration: IOCs Acquisition of IBP and After

<div align=justify>This paper, in the nature of a case study, discusses the entire range of managerial issues addressed by Indian Oil Corporation Limited (IOC) in the acquisition, subsequent merger and post-merger integration of IBP Co. Limited (IBP) following IBP's disinvestment by the Government of India. The three stages of IBP transactions spanned a 5-6 year period from 2002 to 2007. The paper discusses from IOC's perspective, the strategic case for the IBP acquisition, rationale for what turned out to be an extremely aggressive bid price for IBP, the raison for subsequent merger, and the critical choices made by IOC management in post-merger integration of IBP. The paper also examines the controversies the IBP transactions generated in their wake and the corporate governance issues involved. We conclude that IOC appears to have handled the entire value chain of activities in the IBP transactions from acquisition planning and strategic evaluation through deal execution, post-acquisition merger, and to post-merger integration with a high level of professionalism, a balanced sense of priorities and a high degree of sensitivity, rarely seen in the Indian public sector milieu. We also believe that as Indian companies, particularly the larger state-owned enterprises, find themselves in the inevitable need to pursue M&A-based growth strategies, IOC's IBP experience should provide useful guidance in their endeavours. </div>

STRUCTURAL ANALYSIS OF MERGERS AND ACQUISITIONS IN THE FOOD INDUSTRY

Determinants of merger and acquisition activity in the food industry are analyzed using logit regression analysis. Factors affecting the food processing, food retailing and food service sectors are considered. Results indicate merger and acquisition activity in all three sectors are significantly influenced by antitrust activity, profitability and real gross domestic product.Industrial Organization,

EUROPEAN CROSS-BORDER MERGERS AND ACQUISITIONS- REALITIES AND PERSPECTIVES

This paper analyses the impact of the economic and financial crisis on merger and acquisition activity in Europe and the latest trends manifested on the cross-border merger and acquisition market involving European companies. Thus, a first objective of this research is to reveal the evolution of the European cross-border merger and acquisition activity in terms of dynamics, volume and structure. Another objective of this research is to reveal the short and medium term perspectives on mergers and acquisitions in Europe. Thus, under the continuous economic recovery of the European countries and the other worldwide economies, the recovery of financial markets and the growth of corporate profits, we shall witness an intensive cross-border merger and acquisition activity in Europe. The expansion engine of these operations seems to be represented by the emerging economies. This research is based on a systematic, logical and comparative analysis of scientific literature and statistical data regarding the cross-border mergers and acquisitions that involve European companies in recent years. This paper is part of the doctoral thesis "Mergers and acquisitions- strategies of growth and development of enterprises. European and national particularities", coordinated by professor Ph.D. Alina Bădulescu from University of Oradea, Faculty of Economics. The doctoral research is supported by The Sectorial Operational Program for Human Resources Development 2007-2013, Contract POSDRU 59/1.5/S/1- "Romanian researchers through modern and efficient doctoral programs".cross-border mergers and acquisitions, firm strategy, external growth, economic and financial crisis, economic recovery

Testing the limits: Ryanair/Aer Lingus and the boundaries of merger control

Between the summer of 2007 and the autumn of 2015 Ryanair made repeated and determined attempts either to acquire the entirety of Aer Lingus or to defend the acquisition of a minority shareholding in the company. Aer Lingus in turn made repeated and determined efforts to defend itself against an unwanted acquisition. The litigation ceased only at the point where an alternative bid for Aer Lingus was accepted. During this process the difference in the ability of the EU and Member States to exercise control over minority shareholding acquisitions was thrown into sharp relief, and the UK courts discussed the relationship between the exercise of UK merger control and EU merger control. This article explores various aspects of this chain of decisions and litigation

Common wave behavior for mergers and acquisitions in OECD countries? a unique analysis using new Markov switching panel model approach

This paper investigates whether or not there is co-waved merger and acquisition (M&A) activity in 26 OECD countries. We apply the Markov Switching model to panel data (MSP hereafter), an approach which has not previously been attempted. Two distinct regimes are recognized in emerge from M&A data: the wave merger regime and normal merger regime. Our MSP captures the co-wave pattern of the sample countries and has a much better fit than either the univariate Markov Switching model or the conventional linear panel model.

Does post merger financial performance improve after agrifood mergers of cooperatives? An empirican analysis

This study was carried out to characterize the mergers and acquisitions undertaken in the Spanish agrifood sector during the period 1995-2005 and has two objectives. Firstly, it aims to determine the manner in which economic-financial factors influence the type of merger carried out (merger by formation of a new legal person and merger by acquisition), and the role played by cooperatives (acquirer, acquired or cooperative involved in a merger by formation). Secondly, it aims to determine whether these mergers have contributed to reaching any of the objectives they were set out to achieve: improving the economic-financial situation of the companies involved, increasing income and reducing relative costs. The results obtained show that on average, following a merger, there were no statistically significant improvements in the economic-financial indicators studied.Agribusiness, Agricultural Finance,

Abnormal Return Dan Likuiditas Saham Atas Pengumuman Akuisisi

The purpose of this study is to analyze the difference of abnormal return and liquidity before and after the announcement of mergers and acquisitions. Abnormal returns are measured with market-adjusted model. Liquidity is &nbsp;measured with trading volume and Amihud Illiquidity ratio. The observation period (event windows) of this research is &nbsp;11 trading days which 5 trading days before the announcement of the merger and acquisition and 5 trading days after the announcement mergers and acquisitions. Research sample consists of 70 companies which announce merger and acquisition between 2010 and 2014. The results show that 1)there is significant differences of abnormal returns before and after merger and acquisition, and 2)there is no significant differences of stock liquidity before and after merger and acquisition

Merger Efficiency and Managerial Incentives

We consider a two-stage principal-agent model with limited liability in which a CEO is employed as agent to gather information about suitable merger targets and to manage the merged corporation in case of an acquisition. Our results show that the CEO systematically recommends targets with low synergies—even when targets with high synergies are available—to obtain high-powered incentives and, hence, a high personal income at the merger-management stage. We derive conditions under which shareholders prefer a self-commitment policy or a rent-reduction policy to deter the CEO from opportunistic recommendations

Development of measures on increase of economic security of merger and acquisition transactions in Ukraine

The article shows the essence of merger and acquisition processes, characterises their types, analyses positive and negative consequences of these processes. It generalises main methods of assessment of effectiveness of merger and acquisition processes. It analyses dynamics, structure and effectiveness of activity of the banks with foreign capital in Ukraine. It offers measures on increase of effectiveness of regulation of merger and acquisition processes and develops an algorithm of assessment and analysis of the portfolio of bank products under conditions of consolidation of banking institutions