In this article, the impact of M&A on the acquiring firms’ EBITDA margin is tested. EBITDA is the financial measure that is used for analytical purposes.
In this article, the impact of M&A on the acquiring firms’ current ratio is tested. The current ratio is one of the key ratios indicating the financial performance of a firm.
The financial performance is linked to shareholder value which in turn affects the capital structure of the businesses. Generating more wealth for the shareholders can help to build a strong capital structure which is essential for long term growth of businesses.
Synergies are a form of value addition created in M&A
activities. The value addition is a representation of the finances in the form of revenues and costs that these merged businesses can achieve.