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Synergies of Mergers Identification in Mechanical Engineering Companies
Pěta, Jan ; Hrvolová, Božena (referee) ; Sedláček, Jaroslav (referee) ; Živělová, Iva (referee) ; Režňáková, Mária (advisor)
The dissertation deals with different approaches to determining the value of synergies of companies implementing mergers in the mechanical engineering industry in the Czech Republic. This topic was chosen because of the high number of mergers, as well as the failure to achieve the effects planned. As a result, the consequence of such transactions is not the expected value growth for the owners. In the theoretical part of the thesis, mergers are defined from a legal point of view, and the historical development in the studied area is described. Based on the results of previous research, the systematization of the motives of mergers was carried out. The most common reason is the planned economic benefits in the form of cost savings or revenue growth. This part also describes the merger efficiency evaluation procedures used in previous research. Two approaches were identified, the first based on financial analysis indicators, and the second on discounted cash flow. The main objective of the dissertation is to propose adjustments to the procedure of valuation of companies implementing mergers in order to make it possible to identify the formation of synergy. Therefore, the data of companies operating in the mechanical engineering industry from 2004 to 2011 was used. As part of factor research, statistical tests of significance and dependence were used; the methods of classification and regression trees, as well as the linear regression model, were used to predict synergy. First, using the revenue indicators and operating profit, the transactions were divided into successful mergers and unsuccessful mergers. Based on this division, statistically significant differences in the financial analysis indicators were identified between companies implementing successful and unsuccessful transactions. Statistically significant differences were identified in the indicators of labour cost to revenues, depreciation to revenues and asset turnover ratio. All of the companies examined (target, bidder and newly created) were valued using the discounted capital cash flow method. Based on this valuation, factors that affect the value of the synergy achieved before implementation of the merger were identified. The indicators of return on assets, short-term financial assets to assets, cash flow to assets, and cash flow to interests were identified as statistically significant. These indicators were subsequently used to create prediction models. The first model predicts whether synergies will be achieved, and the second model predicts what the value of the synergies will be. The second model was subsequently incorporated into the pre-merger company valuation model
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Synergies of Mergers Identification in Mechanical Engineering Companies
Pěta, Jan ; Hrvolová, Božena (referee) ; Sedláček, Jaroslav (referee) ; Živělová, Iva (referee) ; Režňáková, Mária (advisor)
The dissertation deals with different approaches to determining the value of synergies of companies implementing mergers in the mechanical engineering industry in the Czech Republic. This topic was chosen because of the high number of mergers, as well as the failure to achieve the effects planned. As a result, the consequence of such transactions is not the expected value growth for the owners. In the theoretical part of the thesis, mergers are defined from a legal point of view, and the historical development in the studied area is described. Based on the results of previous research, the systematization of the motives of mergers was carried out. The most common reason is the planned economic benefits in the form of cost savings or revenue growth. This part also describes the merger efficiency evaluation procedures used in previous research. Two approaches were identified, the first based on financial analysis indicators, and the second on discounted cash flow. The main objective of the dissertation is to propose adjustments to the procedure of valuation of companies implementing mergers in order to make it possible to identify the formation of synergy. Therefore, the data of companies operating in the mechanical engineering industry from 2004 to 2011 was used. As part of factor research, statistical tests of significance and dependence were used; the methods of classification and regression trees, as well as the linear regression model, were used to predict synergy. First, using the revenue indicators and operating profit, the transactions were divided into successful mergers and unsuccessful mergers. Based on this division, statistically significant differences in the financial analysis indicators were identified between companies implementing successful and unsuccessful transactions. Statistically significant differences were identified in the indicators of labour cost to revenues, depreciation to revenues and asset turnover ratio. All of the companies examined (target, bidder and newly created) were valued using the discounted capital cash flow method. Based on this valuation, factors that affect the value of the synergy achieved before implementation of the merger were identified. The indicators of return on assets, short-term financial assets to assets, cash flow to assets, and cash flow to interests were identified as statistically significant. These indicators were subsequently used to create prediction models. The first model predicts whether synergies will be achieved, and the second model predicts what the value of the synergies will be. The second model was subsequently incorporated into the pre-merger company valuation model
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Mergers and Acquisitions in the Czech Financial Sector
Klimakov, Anton ; Vomáčková, Hana (advisor) ; Pospíšil, Jiří (referee)
The aim of this thesis is a description of the development of a company through acquisitions and mergers. The work is divided into two parts, the first part describes the M&A concepts, their types, properties and motives that lead companies to be merged. At the same time the theoretical part describes the course of the pre-acquisition analysis, valuation in the acquisition process and audit of financial statement. The second part focuses on the real cases of mergers and acquisitions, which took place in recent years. The aim of this section is to determine whether the mergers and acquisitions have accomplished its mission, according to the financial results, and profitability and market position of the company have improved.
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Analysis of mergers and acquisitions on Czech market with evaluation of its effects
Masopustová, Tereza ; Půlpánová, Stanislava (advisor) ; Paslerová, Andrea (referee)
Diploma thesis deals with an analysis of mergers and acquisitions on Czech market with evaluation of its effects. Introduction of the thesis contains glossary of related terms in areas of mergers and acquisitions and definition of motivations of companies to implement change. Thesis is focused on financial market and mostly on bank sector. Following part of the thesis is describing history and evolution of mergers and acquisitions on global market and after that on Czech market with emphasis on change from central planned system to market economics. The biggest added value of the thesis is description of valuation methods for ex post analysis of financial transaction between banks. Financial analysis method, evaluation of different subject's market share or evaluation of merged companies are involved. Some of these methods are used on real case of merger of eBanka and Raiffeisenbank that was finished in 2008.
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