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Vztah výše prémií akvizic (Acquisition Premium) a klíčových ekonomických ukazatelů
Schmied, Richard
This bachelor thesis examines whether investors are willing to pay a higher price (acquisition premium) for the companies they buy in times of economic growth. Using a correlation analysis, performed on a sample of data between 2004 and 2021, the author of the thesis rejected the dependence of the above time series of acquisition premiums and the development of the economy, expressed by the time series of changes in gross domestic product. The thesis also points out the real determinants of the level of acquisition premiums, such as the size of the company or operational synergies within the company. The author further finds that in times of economic crisis (caused by COVID-19 pandemic) these time series are correlated with each other. He notes that this finding may prove to be a direction for future research in this area. Furthermore, the author mentions possible shortcomings of the paper due to the limited data set. This bachelor thesis can serve as an insight into the issue of acquisitions in the future and the author recommends further research into the above-mentioned phenomena.
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Utilization of Financial Analysis as a Tool for Investment Decisions
Fadrný, Matěj ; Bílek, Michael (referee) ; Ptáček, Roman (advisor)
Thesis is about due diligence in mergers and acquisitions. Where a selected economic entity is examined based on due diligence methods. First part of thesis considers theoretical aspects related to due diligence and M&A. In practical part are done financial due diligence and legal due diligence. As part of financial due diligence are analysed financial statements and performer financial analysis. The riskiest aspects and proposals for their correction are derived from the results.
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Non-competition clause in M&A transactions from the perspective of Competition Law
Pavlík, Filip ; Patěk, Daniel (advisor) ; Pelikán, Robert (referee)
The presented thesis with a title "Non-competition clauses in M&A transactions from the perspective of Competition Law" aims to comprehensively analyse the question of conclusion of non-competition clauses with emphasis on the context of M&A transactions and the reasons for their conclusion. The main contribution of this thesis is to provide a comprehensive overview of the conditions of validity of non-competition clauses when these are observed, it is possible to consider the non-competition clause as agreed between the parties of the relevant M&A transaction as justified and proportionate, with a minimum risk of such clause being revoked. In the first chapter, I am dealing with the concept of M&A transactions, individual types of M&A transactions and their division. At the end of this chapter, the importance of the non- competition clauses is outlined with reasons why they are concluded within M&A transactions. In the second chapter, I have focused on the general characteristics of competition and prohibition of competition. This chapter also deals with the non-competition clauses themselves in M&A transactions and the adjustment of these clauses in accordance with the Commission Notice on restrictions directly related and necessary to concentrations (2005/C 56/03). The third chapter deals with...
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Non-competition clause in M&A transactions from the perspecitve of Competiton Law
Pavlík, Filip ; Patěk, Daniel (advisor) ; Pelikán, Robert (referee)
The presented thesis with a title "Non-competition clauses in M&A transactions from the perspective of Competition Law" aims to comprehensively analyse the content and the question of conclusion of non-competition clauses with emphasis on the context of M&A transactions and the reasons for their conclusion. The main contribution of this thesis is to provide a comprehensive overview of the conditions of validity of non-competition clauses when these are observed, it is possible to consider the non-competition clause as agreed between the parties of the relevant M&A transaction as justified and proportionate, with a minimum risk of such clause being revoked and also provide a practical perspective on the matter of their negotiation based on an analysis of a representative sample of completed transactions. In the first chapter, first, I am briefly dealing with the general definition of competition, and subsequently with the concept of non-competition clause, its impact on competition and where it can be found in practice. The second chapter deals with a summary of the most important European and Czech legal regulation on non-competition clauses and Commission soft-law. In chapter three, I am dealing with the concept of M&A transactions, the reasons for making them and their division. In the second...
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Empirical Analysis on Multiple Mergers of US Banks
Le Thi Hong, Minh ; Novák, Jiří (advisor) ; Serdarevič, Goran (referee)
We use logistic analysis to predict the probability of making non-programmed merger in a data sample of 45 US banks. Non-programmed merger is the merger that happens next to the subject merger but has at least three years apart from the subject merger. We apply logistic regression of the occurrence of the non-programmed merger on main characteristics of the subject merger. We first examine the effects of each of three explanatory variables, which are firstly abnormal return around the approved date, secondly hubris management hidden in the subject merger, and thirdly the value of asset acquired, on the dependent variable. We then try to find the best prediction model by controlling some variables both confounding and rescaling. Our final prediction model shows that the probability of making a next merger at least three year after the subject merger will significantly decrease if there is abnormal return realized in the subject merger. On the other hand, using event study methodology to search for the abnormal return of the acquirer's stock price around the approved date, we prove that the information of FDIC s' merger decision is not totally confidential to public and has significant impact on the stock price of the acquirer
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Corporate Acquisitions and Expected Stock Returns: A Meta-Analysis
Parreau, Thibault ; Havránek, Tomáš (advisor) ; Kukačka, Jiří (referee)
This thesis aims at investigating the puzzling relationship between cor- porate acquisitions and expected stock returns by reviewing numerous studies on this topic through the use of state of the art meta-analysis tools. Such an analysis is required because many papers examined this relationship but their results varied. We therefore collected 421 estimates from 20 papers and led multiple regressions to test for the presence of publication bias. Throughout this analysis we indeed found evidence supporting the existence of publication bias. Furthermore, we decided to apply Bayesian Model Averaging to reduce the model uncertainty and find out why our abnormal returns estimates greatly vary across stud- ies. Our results suggest that one of the most important drivers are the standard-error terms. This subsequently proves that publication bias is the most responsible for the heterogeneity amongst our estimates. Our analysis fails to demonstrate any positive effects from M&A activity on a firm post-acquisition performance. We suggest that other motives are under-represented in the underlying theory that aims to assess M&A outcomes. Keywords Mergers and Acquisitions, Stock Returns, Abnormal Re- turns, Meta-Analysis, Publication bias Author's e-mail thibault.parreau@gmail.com Supervisor's e-mail...
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Analysis of Effects of the European Monetary Union on Merger and Acquisition Activity in Europe
Přerovský, David ; Novák, Jiří (advisor) ; Nechvátalová, Lenka (referee)
Analysis of Effects of the European Monetary Union on Merger and Acquisition Activity in Europe David Přerovský Abstract The aim of this thesis is to, firstly, analyze effects of the creation of the European Monetary Union (EMU) on cross-border merger and acquisition activity in Europe, and, secondly, to investigate whether joining the EMU after it had been established results in higher M&A activity. Our research utilizes the difference-in-differences and difference in difference in differences approaches in which we compare aggregate M&A activity in new adopters of the euro to that of a control country, whose aggregate M&A activity had followed a similar trend up until the adoption. These methods allow us to account for country-specific trends in M&A activity and the for the phenomenon of M&A waves. Our results show no evidence that creation of the EMU caused higher M&A activity among the members or higher M&A activity in general. For later joiners, no evidence of higher M&A activity as a result of adopting the euro is found either.
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M&A activity and the capital structure of target firms
Flannery, M. J. ; Hanousek, Jan ; Shamshur, Anastasiya ; Trešl, Jiří
Using a large sample of European acquisitions, we find that acquired firms substantially close the gap between their actual and optimal leverage ratios. The bulk of this adjustment occurs quite rapidly – within a year of the acquisition. The typical over-levered firm adjusts its debtto-assets ratio from 34.4% in the year before acquisition to 20% in the year after. (The adjustment is smaller, but still quite rapid, for targets that had been under-leveraged.) These adjustments occur primarily through debt issuances or retirements. We also investigate whether target firms’ pre-merger leverage contributes to the probability of them being acquired. We find that firms further away from their optimal leverage are more likely to be acquired: for an average firm, an increase in the absolute leverage deviation from 1% to 10% of total assets increases the probability of being acquired by 4.1% to 5.6% (The larger effect applies to overleveraged firms.) Overall, our results provide support for the trade-off theory of capital structure and suggest that financial synergies have a significant role in the typical European acquisition decision.
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Corporate Acquisitions and Expected Stock Returns: A Meta-Analysis
Parreau, Thibault ; Havránek, Tomáš (advisor) ; Kukačka, Jiří (referee)
This thesis aims at investigating the puzzling relationship between cor- porate acquisitions and expected stock returns by reviewing numerous studies on this topic through the use of state of the art meta-analysis tools. Such an analysis is required because many papers examined this relationship but their results varied. We therefore collected 421 estimates from 20 papers and led multiple regressions to test for the presence of publication bias. Throughout this analysis we indeed found evidence supporting the existence of publication bias. Furthermore, we decided to apply Bayesian Model Averaging to reduce the model uncertainty and find out why our abnormal returns estimates greatly vary across stud- ies. Our results suggest that one of the most important drivers are the standard-error terms. This subsequently proves that publication bias is the most responsible for the heterogeneity amongst our estimates. Our analysis fails to demonstrate any positive effects from M&A activity on a firm post-acquisition performance. We suggest that other motives are under-represented in the underlying theory that aims to assess M&A outcomes. Keywords Mergers and Acquisitions, Stock Returns, Abnormal Re- turns, Meta-Analysis, Publication bias Author's e-mail thibault.parreau@gmail.com Supervisor's e-mail...
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