Abstract:
In this Master thesis I will try to prove, basing on empirical findings, subject literature and case
studies that Mergers and Acquisitions can and often do create value for shareholders. Most of the deal makers could increase their value growth if not very high multiples and premiums. The lack of discipline during every stage of the process destroys the shareholder value of acquiring company. Thus, the right strategic choices in terms of designing and implementing the right value orientated strategy are crucial. Finally, I will attempt to predict future trends of Mergers and Acquisitions paying attention to business and geopolitical background.
In this Chapter, besides the preparation of hypothesis, I will describe briefly the structure of the
work and illustrate the conceptual foundations.
Second Chapter gives an insight into global M&A market and presents an historical perspective into its development. In the course of this chapter the main transaction motives are listed and described.
The Third Chapter is focused on the value creation potential of Mergers & Acquisitions. After
describing the necessary conditions for the value growth of the M&A transaction a real impact of the synergy potentials is analyzed. Finally, I summarize the assessment of Merger & Acquisitions value creation potential.
After brief introduction of the figures weaknesses in the accounting system in terms of financial corporate management the Fourth Chapter deepens the shareholder value approach. Due to the subject matter of this work a priority is given to the "Shareholder Value Analysis" as the tool of Value Growth Analysis. The Free Cash Flow is used as a method of calculating the final value and the capital costs. The Fifth Chapter includes a description of relationship between strategic corporate management and value management. In the course of this chapter a comprehensive presentation of the strategic objectives and their implementation strategy on both business field and operational level is presented. As part of the business field strategies I try to explore how to formulate a competitive strategy using competitive analysis. The question whether a sustainable competitive advantage can be achieved is answered in the course of strategy valuation chapter. Subsequently, I portray possible corporate strategies which are being used to achieve sustainable competitive advantage. The acquisition strategies, as part of the corporate strategy describe possible positions which a company can take in terms of M&A activities. As an evidence of the previously described theory the actual company’s valuation is presented in the Sixth Chapter. The methods used in this chapter to examine the value of the company are
typical techniques used in the Corporate Finance Consulting field to assess the value of the
company. Finally, in the Seventh Chapter I draw the conclusions from the investigation.
