M&A deal efficiency: integrated evaluation methodology

Abstract

Article studies the performance of the stock price and financials of the firms acting in the M&A deals. Analysis of excessive base of public M&A deals allover the world since 2005 reveals the link between the reaction of the market on the deal news and the performance of financials of merged firms two years later. The degree of the correlation depends on development of the fund market, firm’s size and other attributes.