Post-Merger Performance of Acquiring Firms from Different Industries in the US

Peer reviewed: 
No, item is not peer reviewed.
Scholarly level: 
Graduate student (Masters)
Date created: 
Mergers and acquisitions (M&A)
Operating performance

In today’s International economic integration and globalization, mergers and acquisitions (M&A) are playing an increasingly important role all over the world in aspects of providing significant opportunities for significant growth, expanding core areas of interest, increasing shareholders value and gaining greater market shares. Our research study aimed to analyze the influence of mergers on the operating performance of the acquiring firms in different industries, by examining some pre-merger and post-merger financial ratios, with the sample of firms chosen as all mergers involving public companies in the US between 2008 and 2012. The results demonstrate that there are minor variations in terms of impact on operating performance following mergers, in different industries in the US. In particular, mergers seem to have had a slightly positive impact on firm profitability in the Financials Industry, Healthcare Industry, Technology Industry and Industrials sector. The Energy and Power Industry and Retail Industry saw a marginal negative impact on operating performance (in terms of profitability and returns on investment). For the Healthcare Industry and Industrials Industry, mergers had caused a decline related to returns on investment and assets.


Master of Science in Finance Program - Simon Fraser University

Document type: 
Graduating extended essay / Research project
Rights remain with the authors.
Senior supervisor: 
Christina Atanasova
Beedie School of Business - Segal Graduate School