Impact of Business Evaluation Process on Mergers and Acquisitions Outcome

Student thesis: Doctoral ThesisDoctor of Philosophy


Mergers and Acquisitions (M&As) have been on the rise since last three decades and have attracted considerable attention from the research community. Conclusion drawn by some of the studies are that such transactions do not result in better performance or that they erode acquiring firm‘s shareholder value and produce highly volatile market returns. A number of studies have analyzed reasons for such inefficiencies and have pointed out several factors. However, very little attention has been given to business evaluation process as an influencing factor. This study investigates that how the processes involved in the evaluation of a target firm influence the outcome of the M&As?

The research objective requires insight of the situations accruing at the time of happening of a particular event by interacting with those involved in the process. Considering the exploratory nature of the research question, the study adopts a comparative Case Study methodology to investigate the impact of business evaluation on the performance of M&As.

The findings reveal that processes related to business evaluation have a significant impact on the outcome of the Merger and Acquisition (M&A) transactions. Sounder, controlled and inter linked processes can ensure better chances of their success. Further, the boundaries of the business evaluation processes, for the sake of M&A transactions, need to be elaborated to make performance assessment as its integral part. This would help in shaping the performance of the transactions by taking remedial steps during their implementation. The study complements earlier studies and provides a holistic view on the factors influencing performance of such transactions. Hence, outcome of the study would bring clarity in understanding the relationship and behavior between different components and related factors of business evaluation and M&A performance.
Date of Award1 Oct 2013
Original languageEnglish
Awarding Institution
  • King's College London
SupervisorPervez Ghauri (Supervisor) & Fatima Wang (Supervisor)

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