MERGERS AND ACQUISITIONS: A PRE AND POST FINANCIAL RATIO ANALYSIS EVALUATION. EVIDENCE FROM GREECE

The mergers and acquisitions are a modern phenomenon in the financial sector. Like every business, so are the Banks looking for opportunities and ways to become more competitive to cope with the changes in the market. In this article we examine the profitability, liquidity and operational financial ratios in a pre and post acquisition case study from the Greek Banking System. From the analysis of those ratios we try to find out if there is an improvement of them when the bidder bank takeovers a "bad" target bank, and if any improvement how many years after the acquisition observed. The case of a pre and post acquisition of Emporiki Bank of Greece by Alpha Bank of Greece is a representative case study for describing what happened in Greece during the before and after the financial crisis. For examine this case study we use financial analysis evaluation with the most significant financial ratios of the involved int acquisition Greek banks. The evaluation of the acquisition is made with the use of balance sheets and the financial reports of the banks pre and post the acquisition took place. The research is based on the use of liquidity profitability and operational ratios and so the performance of the involved banks is presented and analyzed before and after the acquisition. Presenting and analyzing the performance of the two involved in acquisition banks, with the help of financial data will lead to conclusions about whether the acquiring bank has achieved its objectives. Of course these objectives were the improvement of profitability liquidity and operation profit of the bidder Alpha Bank Keywords: Banks, Mergers & Acquisitions, Financial Ratio Analysis, Liquidity Profitability. JEL Classification: G21, G33, G3

MERGERS AND ACQUISITIONS IN THE GREEK BANKING SYSTEM. A PROFITABILITY EVALUATION ANALYSIS WITH DUPONT MODEL

The unfavorable economic situation, that prevailed in the first five years from the financial crisis that it invaded in Greece in 2010, caused very serious problems regarding the organization of the Greek banking sector. This resulted in the in-depth restructuring of the Greek banking system with acquisitions and mergers in order to create large systemic and crisis-resistant banks, in order to be able to face the looming upcoming profitability problems. The purpose of this study is to evaluate the profitability ratios of the both target and bidder banks that they took place in the wave of acquisitions during the financial crisis and to find out if there is any improvement of profitability to the remained bidder systemic Greek banks. For this reason, we examine and analyze the profitability using the DuPont method three years before the acquisition and three years after the acquisition. Essentially, we study whether the major acquisitions carried out by the Greek systemic banks during the financial crisis had improved their profitability in the short and long term time period. So we describe a general theoretical framework of the DuPont model and the theoretical framework profitability ratios that are part of the DuPont modulus Keywords:  Banks, Mergers & Acquisitions, Profitability, DuPont Analysis. JEL Classification: G21, G33, G3

PREDICTING BANKRUPTCY OF MOBILE COMPANIES BEFORE AND AFTER THE PANDEMIC COVID-19 IN THE GREEK EMERGING MARKET

In this work we analyze three of the most basic bankruptcy prediction models that have been developed and in particular Altman's Z''-score model, Ohlson's model and finally Chesser's model. These models are then applied to the three mobile phone companies that operating in emerging market such as Greece. The aim of the present study is to determine firstly whether bankruptcy is looming in these mobile companies and secondly which of the used bankruptcy models present more accurate information about whether bankruptcy is present or looming. In addition, the bankruptcy risk of each company is determined based on its probability of bankruptcy and it is assigned a credit score based on which it is classified in a credit tier. Finally, the credit risk premium required by investors, the expected losses of its creditors and the expected value of the company in the event of bankruptcy are determined. The companies under review are Cosmote, Vodafone and Nova for the last five years 2018-2022. This five year of examined time period includes two years 2018-2019 before the pandemic Covid-19, the year of the pandemic 2020, and two years 2021-2022 after the pandemic, so it allow us to observe if there is an infection of the pandemic in the results of bankruptcy models Keywords: Bankruptcy, Emerging Markets, Corporate Finance JEL: G1, G3, G33

MERGERS AND ACQUISITIONS. AN EVALUATION ANALYSIS OF BANKRUPTCY PRE AND POST OF BOTH EVENTS. EVIDENCE FROM GREECE

The banking sector is one of the most important sectors in economy of the world and occupies a prominent position in the development. The banking system in Greece is regulated by the European Central Bank (ECB) and is composed of various types of banks, including systemic commercial banks, non systemic commercial banks and cooperative banks. The purpose of this study is to study the case of the reduction or not of the occurrence of bank bankruptcy after the acquisition they made of banks with financial difficulties. For this purpose, we study the possible bankruptcy of the acquired banks before their acquisition, as well as the possible bankruptcy of the acquiring banks before and after the acquisition. There are several models for predicting bankruptcy, including financial ratio analysis Z-score model, Zeta model, financial soundness model and other models. In this study to predict bankruptcy for banks we use the Zeta model for banks. This model is one of the commonly used in the international scientific community. The time period of the study is defined after the beginning of the global financial crisis in the year of 2008 and before the pandemic. This global financial crisis as known invaded Greece mainly in year 2010 an the pandemic started at the end of year 2019. The examined time period concerns both a short-term and a long-term period of time for the most rational drawing of conclusions. This specific study is based on the analysis of two of the most characteristic cases involving Greek banks involved in takeovers. One case concerns Greek cooperative banks and the other one concerns Greek systemic banks. Keywords: Cooperative Banks, Mergers & Acquisitions, Cash Flows Ratio, Profitability, Insolvency. JEL Classifications: G21, G33, G3

MERGERS AND ACQUISITIONS INVESTMENTS OF THE GREEK SYSTEMIC BANKS DURING THE LAST 20 YEARS. A FINANCIAL ANALYSIS

The banking system of any country is the engine for the development of the national economy. The purpose of this dissertation is the analysis through the use of numerical indicators of the financial situation of the four largest Greek banks (National Bank of Greece, Alpha Bank, EFG Eurobank Ergasias, Piraeus Bank) and their evaluation for the period 2003-2021. This period is critical, as it includes years before and after Greece's entry into the financial crisis. Therefore, the present analysis and its results are very important for the viability and future of Greek banks, especially in the current conditions of uncertainty.This paper is an attempt to analyze and evaluate the investment activity of Greek banks through the mergers and acquisitions that they carried out in the last decade after the advent of the euro, i.e. before and after the financial crisis, which invaded Greece essentially in the year 2010 Keywords:  Banks, Investments, Mergers and Acquisitions, Financial Ratios. JEL classification: G21, G33, G34

MERGERS & ACQUISITIONS. A FINANCIAL ANALYSIS OF A BIG CASE STUDY IN EMERGING MARKETS DURING THE PANDEMIC

This paper deals with the issue of Acquisitions and Mergers. More emphasis is placed on the approach of the term Acquisition, and in particular on a large and important acquisition of two companies listed on the Greek economy. As is known, the Greek stock market belongs to the emerging markets. The agreement and completion of the acquisition took place during the pandemic. This study is an in-depth research and financial analysis of the companies Singular Logic and Epsilon Net for the years 2011 to 2020. The two companies, Singular Logic and Epsilon Net, have agreed to acquire the former from the latter in 2020. An acquisition carried out with the partial separation of the acquired business until the beginning of 2021, and the result of this process was the newly established company Epsilon Singular Logic SA This newly established company is half-owned by Epsilon Net and Space Hellas. As far as the study of this particular work is concerned, a complete financial analysis is carried out before the acquisition of these two companies. Our analysis focuses on a longitudinal comparison with productivity, efficiency, cash flow, investment ratios, liquidity, the Altman bankruptcy model and finally the takeover evaluation models, between Epsilon Net and Singular Logic. This comparative study tries to highlight the financial course of the two companies with any financial problems that existed from the year 2011 to the year of the acquisition agreement 2020, i.e. before the completion of the split and acquisition of the economic entity Singular Logic. Keywords: Mergers & Acquisitions, Financial Analysis. JEL Classification: G21, G33, G34