VALUE CREATION CHAIN IN MERGERS AND ACQUISITIONS
VALUE CREATION CHAIN IN MERGERS AND ACQUISITIONS

Summary/Abstract: The aim of this paper is to investigate the value creation chain and key value drivers in mergers and acquisitions (M&A). The proposed conceptual framework follows the logic of value chain based on the premise that both financial and human characteristics have an impact on value creation in M&A. Added value potentials and value drivers in both companies, acquiring and target, should be carefully analyzed as only integrative synergies create value for shareholders by harvesting added value in post-merger integration. Therefore, value creation has to be measured in free cash flow increments and its influence on corporate performance should be the centerpiece of M&A activity.

• Details
• Contents