Value Creation in M&A transactions

Abstract

As many writers, analyst or people related to financesay, Mergers & Acquisitions transactions are most ofthe times not profitable or they do not “create value”, making the acquirer’s shareholders lose money. Even it is estimated that “around 50% of mergers don’t achieve their business objectives [...] according to several studies conducted over the past four decades” (Kumar, 2009). This research paper tries, in first place, to understand and explain a bit more the process and the facts of M&A transactions, taking a deeper look at value creation, what it is and how it can be measured. So later, it will try, by analysing some past transactions in Europe, explain or conclude which factors are more important to succeed in this type of activities, as well as understand how this world is nowadays (volume of transactions, size of them, countries and industries of the companies, etc.)