sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
Mergers and Acquisitions »
 Deals of the day-Mergers and acquisitions April 18, 2019
 Deals of the day-Mergers and acquisitions April 17, 2019
 What landscaping companies need to know about mergers and acquisitions
 When it comes to mergers, IIM-B study finds corporate India prefers caste over profit
 M&A deals in India decline 16.9% to $25.8 billion in Q1, says report
 Banking consolidation kicks in, more mergers & acquisitions in FY20
 How Dena Bank, Vijaya Bank customers will benefit from their banks' merger with Bank of Baroda
 Deals of the day-Mergers and acquisitions April 1, 2019
 Converging Forces Drive Mergers & Acquisitions for Insurers in CIS Region, Says AM Best Senior Financial Analyst
 Deals of the day-Mergers and acquisitions March 27, 2019
 L&T Infotech shares already carry scars of meddling with Mindtree

Research identifies what makes a company an attractive acquisition target
September, 20th 2016

Underperforming public companies have become increasingly attractive acquisition targets in recent years, according to research out today.

Intralinks and the Cass Business School have published a study, based on data spanning 23 years and 34,000 firms worth at least $50m (£38m), seeking to determine what features make a company an attractive target.

The researchers examined six areas: growth, profitability, leverage, size, liquidity and valuation.

Read more: Deal or no deal? Companies that are more M&A active perform better

Difference in attractiveness between public and private companies

They found that high leverage and large size are the two most statistically significant predictors of a private company becoming an acquisition target.

However, among public companies, the best predictors were small size and low profitability, the research found.

Philip Whitchelo, vice president of strategy and product marketing at Intralinks, said:

Since 2008, acquirers have been particularly targeting underperforming public firms, because underperforming public companies are more likely candidates for operational improvements and cost savings through merger synergies.

Buyers also take advantage of public companies whose valuations have fallen the most during market downturns.
Read more: ITV talked up as post-Brexit vote foreign takeover target

The study also found that companies in the energy sector were the most likely to be acquired.

Professor Scott Moeller, director of the M&A research centre at Cass Business School in London, said:

There have been many historic deals which reflect our results.

Take the acquisition of Panasonic Healthcare by KKR in 2013, or the acquisition of Whyte & Mackay by Emperador in 2014 – these targets had high probabilities of being acquisition targets based on their leverage and size – and this eventually became a reality.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - We Bring IT. Offshore software outsourcing company. We use Global Delivery Model (GDM) and believe in Follow The Sun principle

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions