Bachelor Thesis from the year 2011 in the subject Business economics -
Investment and Finance, grade: B/1,7, language: English, abstract:
Today, companies need to constantly expand their business to stay ahead
of the severe competition. As competition grows more intense, it makes
sense to join forces or simply acquire the rival to provide the most
diverse service and to reach even the last customer. But is it really
only about the need for efficiency to merge and acquire competitors? Are
managers and investors right about their hope, that every new
acquisition or merger offers more control over the market? Or are they
themselves pushed into these promising expectations? This research
focuses on how social behavior influences value creation in mergers and
acquisitions. Throughout history, waves have been observed that reflect
the excessive hype for perennial need of growth. Growth by acquisitions
and mergers is seen as key element to create value by investors and
managers. However, reality looks different. This research focuses on a
two step approach by first describing underlying social catalysts that
amplify the trend towards value creation in mergers and acquisitions.
Secondly, to verify the investigation of social behavior, the results
are matched to a financial approach to detect whether the transaction
price justifies the current value and possible synergies or whether
value is destroyed. A case study was conducted of Boss Media AB, a
software company situated in the online gaming industry, which
experienced several mergers and acquisitions since their foundations and
was eventually acquired itself. The company provided an interview and
further information on their involvement with mergers and acquisitions.
The research showed that mergers and acquisitions continue to increase
in number and value, leading to the amplitude of each wave being higher
than the previous one. This also means that more value is destroyed. It
is illustrated that managers being determ
